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
Date Written: January 13, 2011
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: Suggested Citation