Migrant Networks as substitute for institutions: Evidence from Swiss trade

Pierre-Louis Vézina

No 03-2010, IHEID Working Papers from Economics Section, The Graduate Institute of International Studies

Abstract: This paper uses an untapped dataset on Swiss immigration and a novel instrumental variable to test three channels through which migrants promote trade. The main finding is that migrant networks are an effective substitute for formal institutions in facilitating trade. The effect takes place entirely on the extensive margin, suggesting migrant networks may be reducing fixed entry costs characterized by corruption.

Keywords: trade; migration; corruption (search for similar items in EconPapers)
Pages: 21 pages
Date: 2010-02
New Economics Papers: this item is included in nep-int, nep-mig and nep-soc
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Persistent link: https://EconPapers.repec.org/RePEc:gii:giihei:heidwp03-2010

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