Ethnic Networks and Trade: Intensive vs. Extensive Margins

Federal Reserve Bank of St. Louis Working Paper Series No. 2010-016B

11 Pages Posted: 23 Jun 2010 Last revised: 27 Jan 2011

See all articles by Cletus C. Coughlin

Cletus C. Coughlin

Federal Reserve Bank of St. Louis - Research Division

Howard J. Wall

Lindenwood University - Center for Economics and the Environment

Multiple version iconThere are 2 versions of this paper

Date Written: January 13, 2011

Abstract

Ethnic networks — as proxies for information networks — have been associated with higher levels of international trade. Previous research has not differentiated between the roles of these networks on the extensive and intensive margins. The present paper does so using a model with fixed effects, finding that ethnic networks increase trade on the intensive margin but not on the extensive margin.

Keywords: Ethnic Networks, State Exports, Intensive Margin, Extensive Margin

JEL Classification: F10, R10

Suggested Citation

Coughlin, Cletus C. and Wall, Howard J., Ethnic Networks and Trade: Intensive vs. Extensive Margins (January 13, 2011). Federal Reserve Bank of St. Louis Working Paper Series No. 2010-016B. Available at SSRN: https://ssrn.com/abstract=1628793 or http://dx.doi.org/10.2139/ssrn.1628793

Cletus C. Coughlin

Federal Reserve Bank of St. Louis - Research Division ( email )

411 Locust St
Saint Louis, MO 63011
United States

Howard J. Wall (Contact Author)

Lindenwood University - Center for Economics and the Environment ( email )

209 S. Kingshighway
St. Charles, MO 63301
United States

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