Resident Networks and Corporate Connections: Evidence from World War II Internment Camps

80 Pages Posted: 21 Dec 2013 Last revised: 24 Nov 2016

See all articles by Lauren Cohen

Lauren Cohen

Harvard Business School; National Bureau of Economic Research (NBER)

Umit Gurun

University of Texas at Dallas

Christopher J. Malloy

Harvard Business School; National Bureau of Economic Research (NBER)

Date Written: November 23, 2016

Abstract

Using customs and port authority data, we show that firms are significantly more likely to trade with countries that have a large resident population near their firm headquarters, and that these connected trades are their most valuable international trades. Using the formation of World War II Japanese Internment Camps to isolate exogenous shocks to local ethnic populations, we identify a causal link between local networks and firm trade. Firms are also more likely to acquire target firms, and report increased segment sales, in connected countries. Our results point to a surprisingly large role of immigrants as economic conduits for firms.

Keywords: Information networks, trade links, firm behavior

JEL Classification: F16, F30, G14

Suggested Citation

Cohen, Lauren and Gurun, Umit and Malloy, Christopher J., Resident Networks and Corporate Connections: Evidence from World War II Internment Camps (November 23, 2016). Available at SSRN: https://ssrn.com/abstract=2370091 or http://dx.doi.org/10.2139/ssrn.2370091

Lauren Cohen

Harvard Business School ( email )

Rock Center 321
Soldiers Field
Boston, MA 02163
United States

HOME PAGE: http://www.people.hbs.edu/lcohen

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Umit Gurun (Contact Author)

University of Texas at Dallas ( email )

2601 North Floyd Road
Richardson, TX 75083
United States

HOME PAGE: http://www.umitgurun.com

Christopher J. Malloy

Harvard Business School ( email )

Soldiers Field Road
Baker Library 277
Boston, MA 02163
United States
617-495-4383 (Phone)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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