Ethnic networks and U.S. exports

Subhayu Bandyopadhyay, Cletus Coughlin and Howard Wall

No 2005-069, Working Papers from Federal Reserve Bank of St. Louis

Abstract: This paper provides new estimates of the effects of ethnic networks 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 show that previous estimates of the ethnic-network elasticity of trade are sensitive to the restrictions imposed on the estimated models. Our first departure is to control for unobserved heterogeneity with properly specified fixed effects, which we can do because our dataset contains a time dimension absent from previous studies. Our second departure is to remove the restriction that the network effect is the same for all ethnicities. We find that ethnic-network effects are much larger than has been estimated previously, although they are important only for a subset of countries.

Keywords: Exports; Regional economics (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-net and nep-soc
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Citations: View citations in EconPapers (15)

Published in Review of International Economics, February 2008, 16(1), pp. 199-213

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Related works:
Journal Article: Ethnic Networks and US Exports* (2008)
Working Paper: Ethnic Networks and U.S. Exports (2006)
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