EconPapers    
Economics at your fingertips  
 

Ethnic Networks and International Trade

Gil Epstein () and Ira Gang ()

Departmental Working Papers from Rutgers University, Department of Economics

Abstract: There is a well-established high quality literature on the role of networks, particularly ethnic networks, in international trade. Ethnic networks are a way of overcoming informal barriers (information costs, risk and uncertainty) to trade by building trust and substituting for the difficulty of enforcing contracts internationally. The networks we are interested in are those that form between migrants and natives in the host country and between migrants and their home country. Ethnic networks exist when assimilation is not complete. We consider the struggle of migrants to assimilate and, at the same time, the struggle of the local population to prevent such assimilation. These activities affect trade possibilities. Moreover, we show that it may well be in the interest of migrants who specialize in trade to, at some point in time, turn from investing in assimilation activities and instead invest in anti-assimilation activities in order to preserve immigrants; preferences for home country goods.

Keywords: assimilation; discimination; contracts; ethnicity; international trade (search for similar items in EconPapers)
JEL-codes: D74 F23 I20 (search for similar items in EconPapers)
Date: 2004-11-14
References: Add references at CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

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

Related works:
Working Paper: Ethnic Networks and International Trade (2004) Downloads
Working Paper: Ethnic Networks and International Trade (2004) Downloads
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:rut:rutres:200425

Access Statistics for this paper

More papers in Departmental Working Papers from Rutgers University, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-01-27
Handle: RePEc:rut:rutres:200425