Ethnic Networks and Trade: Intensive vs. Extensive Margins

Coughlin, Cletus C.; Wall, Howard J.

doi:10.2139/ssrn.1756835

Ethnic Networks and Trade: Intensive vs. Extensive Margins

University of Nottingham Globalisation, Productivity and Technology Research Paper No. 2011/02

13 Pages Posted: 8 Feb 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

There are 2 versions of this paper

Date Written: February 7, 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: Suggested Citation

Coughlin, Cletus C. and Wall, Howard J., Ethnic Networks and Trade: Intensive vs. Extensive Margins (February 7, 2011). University of Nottingham Globalisation, Productivity and Technology Research Paper No. 2011/02, Available at SSRN: https://ssrn.com/abstract=1756835 or http://dx.doi.org/10.2139/ssrn.1756835