Ethnic diversity and firms' export behavior

Pierpaolo Parrotta, Dario Pozzoli and Davide Sala

European Economic Review, 2016, vol. 89, issue C, 248-263

Abstract: Media are reporting of companies that are increasing the diversity of their workforce to expand their business internationally. This paper investigates whether these examples constitute pieces of evidence that diversity promotes firms' internationalization. Indeed, diverse companies are like a cosmopolitan world in small scale, in which their employees learn to relate to other cultures. This improves firms' relational capital and ability to market products internationally. To address endogeneity issues, we rely on several empirical strategies, one of which is centered on the well established “shift share” method. Our results are robust across all empirical models, confirming the hypothesis that ethnic diversity favors firms' engagement on international markets.

Keywords: Ethnic diversity; Export; Instrumental variable; Shift share (search for similar items in EconPapers)
JEL-codes: D22 F14 F15 F16 J15 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Related works:
Working Paper: Ethnic Diversity and Firms' Export Behavior (2016)
Working Paper: Ethnic Diversity and Firms' Export Behavior (2014)
Working Paper: Ethnic Diversity and Firms' Export Behavior (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:eecrev:v:89:y:2016:i:c:p:248-263

DOI: 10.1016/j.euroecorev.2016.08.001

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