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The migration network effect on international trade

Metulini, Rodolfo and Sgrignoli, Paolo and Schiavo, Stefano and Riccaboni, Massimo The migration network effect on international trade. EIC working paper series #5/2014 ISSN 2279-6894.

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This paper studies the relationship between migration and trade, with the aim of measuring both direct and indirect network effects. We analyze trade of diferentiated and homogeneous goods using an econometric approach inspired by spatial econometrics, proposing a new way to define country neighbors based on the most intense links in the migration network. We find that migration significantly affects trade across categories both in direct and in indirect way. The indirect impact highlights a stronger competitive effect of third country migrants for homogeneous goods. We also confirm that the effect of migration channels is higher on differentiated goods.

Item Type: Working Paper (EIC working paper series)
Uncontrolled Keywords: Keywords: Trade; Migration; Gravity model; Spatial econometrics, Networks - JEL Codes: F14, F22, C21
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
J Political Science > JV Colonies and colonization. Emigration and immigration. International migration
Research Area: Economics and Institutional Change
Depositing User: Ms T. Iannizzi
Date Deposited: 06 May 2014 13:34
Last Modified: 28 Jul 2014 09:34
URI: http://eprints.imtlucca.it/id/eprint/2193

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