The migration network effect on international trade

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

No 5/2014, Working Papers from IMT School for Advanced Studies Lucca

Abstract: 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.

Keywords: Trade; Migration; Gravity model; Spatial econometrics, Networks (search for similar items in EconPapers)
JEL-codes: C21 F14 F22 (search for similar items in EconPapers)
Pages: 20 pages
Date: 2014-05, Revised 2014-05
New Economics Papers: this item is included in nep-geo, nep-int, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in EIC working paper series

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http://eprints.imtlucca.it/2193/1/EIC_WP_5_2014.pdf First version, 2014 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:ial:wpaper:5/2014

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