Ethnic Networks and U.S. Exports

Subhayu Bandyopadhyay, Cletus Coughlin and Howard Wall

No 1998, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper provides new estimates of the effects of ethnic network on U.S. exports. In line with recent research, our dataset is a panel of exports from U.S. states to 29 foreign countries. Our analysis departs from the literature in two ways, both of which show that previous estimates of the ethnic-network elasticity of trade are sensitive to the restrictions imposed on the estimated models. Our first departure is to control for unobserved heterogeneity with properly specified fixed effects, which we can do because our dataset contains a time dimension absent from previous studies. Our second departure is to remove the restriction that the network effect is the same for all ethnicities. We find that ethnic-network effects are much larger than has been estimated previously, although they are important only for a subset of countries.

Keywords: state exports; ethnic networks (search for similar items in EconPapers)
JEL-codes: F10 R10 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2006-03
New Economics Papers: this item is included in nep-int, nep-net, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Review of International Economics, 2008, 16 (1), 199-213

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Related works:
Journal Article: Ethnic Networks and US Exports* (2008)
Working Paper: Ethnic networks and U.S. exports (2007)
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