The relation between global migration and trade networks

Paolo Sgrignoli, Rodolfo Metulini, Stefano Schiavo and Massimo Riccaboni ()

Physica A: Statistical Mechanics and its Applications, 2015, vol. 417, issue C, 245-260

Abstract: In this paper we develop a methodology to analyze and compare multiple global networks, focusing our analysis on the relation between human migration and trade. First, we identify the subset of products for which the presence of a community of migrants significantly increases trade intensity, where to assure comparability across networks we apply a hypergeometric filter that lets us identify those links which intensity is significantly higher than expected. Next, proposing a new way to define country neighbors based on the most intense links in the trade network, we use spatial econometrics techniques to measure the effect of migration on international trade, while controlling for network interdependences. Overall, we find that migration significantly boosts trade across countries and we are able to identify product categories for which this effect is particularly strong.

Keywords: Trade; Migration; Networks; Gravity model; Spatial econometrics (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (14)

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Related works:
Working Paper: The Relation Between Global Migration and Trade Networks (2013)
Working Paper: The Relation Between Global Migration and Trade Networks (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:417:y:2015:i:c:p:245-260

DOI: 10.1016/j.physa.2014.09.037

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