The Trade Creating Effects of Business and Social Networks: Evidence from France

Pierre-Philippe Combes, Miren Lafourcade and Thierry Mayer

Post-Print from HAL

Abstract: Using theory-grounded estimations of trade flow equations, this paper investigates the role that business and social networks play in shaping trade between French regions. The bilateral intensity of networks is quantified using the financial structure and location of French firms and bilateral stocks of migrants. Compared to a situation without networks, migrants are shown to double bilateral trade flows, while networks of firms multiply trade flows by as much as four in some specifications. Finally, taking network effects into account divides the estimation of the impact of transport costs and of the effect of administrative borders by around three.

Keywords: Migrants; Business groups; Networks; Border effects; Gravity; Structural estimation (search for similar items in EconPapers)
Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (320)

Published in Journal of International Economics, 2005, 66 (1), pp.1-29. ⟨10.1016/j.jinteco.2004.07.003⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: The trade-creating effects of business and social networks: evidence from France (2005)
Working Paper: The Trade Creating Effects of Business and Social Networks: Evidence from France (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00268768

DOI: 10.1016/j.jinteco.2004.07.003

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().