Ethnic Networks and U.S. Exports
FRB of St. Louis Working Paper No. 2005-069A
University of Nottingham Research Paper No. 2006/05
26 Pages Posted: 8 Mar 2006
Date Written: March 2006
Abstract
This paper provides new estimates of the effects of ethnic network on U.S. exports. In line with recent research, our dataset is a panel of exports from U.S. states to 29 foreign countries. Our analysis departs from the literature in two ways, both of which have noteworthy empirical consequences. Our main departure is to remove the restriction that the network effect is the same for all ethnicities. In addition, because our dataset contains a time dimension, we are able to control for unobserved heterogeneity with properly specified fixed effects. We find that ethnic-network effects are much larger than has been estimated previously, although they are important only for a subset of countries.
Note: An updated version of this paper can be found at: http://ssrn.com/abstract=877209
Keywords: Ethnic networks, state exports
JEL Classification: F10, R10
Suggested Citation: Suggested Citation
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