Cross The Border and Close The Gap?: How Do Migrants Enhance Trade

Olivier Godart and Farid Toubal
Authors registered in the RePEc Author Service: Naser Farid ()

No 289, Tübinger Diskussionsbeiträge from University of Tübingen, School of Business and Economics

Abstract: Recent theoretical works suggest that migrants carry their social networks when moving across borders and that they bridge the information gap between partner countries. We derive a theoretical model where migrants reduce informational trade barriers and thus enhance exports. The model is estimated using international trade data at a German State-level. We provide evidence that migrants have a positive and statistically significant impact on bilateral exports of German States.

Keywords: Migration; International Trade; Panel estimation (search for similar items in EconPapers)
JEL-codes: F12 F15 P33 (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:tuedps:289

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