%T The migration network effect on international trade
%I IMT Institute for Advanced Studies Lucca
%K Keywords: Trade; Migration; Gravity model; Spatial econometrics, Networks   -  
JEL Codes: F14, F22, C21
%A Rodolfo Metulini
%A Paolo Sgrignoli
%A Stefano Schiavo
%A Massimo Riccaboni
%L eprints2193
%D 2014
%X 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.
%N 5