Cross the border and close the gap? How do migrants enhance trade

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Dokumentart: ResearchPaper
Date: 2005
Source: Tübinger Diskussionsbeiträge der Wirtschaftswissenschaftlichen Fakultät ; 289
Language: English
Faculty: 6 Wirtschafts- und Sozialwissenschaftliche Fakultät
Department: Wirtschaftswissenschaften
DDC Classifikation: 330 - Economics
Keywords: Migration , Außenhandel
Other Keywords:
Migration, International Trade, Panel estimation
License: Publishing license excluding print on demand
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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 State

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