The structure of ethnic networks and exports: Evidence from Germany

No 198, University of Göttingen Working Papers in Economics from University of Goettingen, Department of Economics

Abstract: This paper provides evidence of the effect of immigration-based networks on German trade. Germany presents a particular interesting case study to examine the effect of ethnic networks on exports due to its high export dependence and its reserved migration policy. According to our results, we find no trade creating effect from migrant networks on exports but on imports, highlighting the importance of the demand effect for Germany. Allowing for heterogeneous network effects shows that at least some migrant networks positively affect exports. However, the most efficient migrant networks do not originate from EU countries but from African or middle-eastern countries that do not have a large migrant network in Germany.

Keywords: migrants; networks; gravity (search for similar items in EconPapers)
JEL-codes: F1 F12 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-eur, nep-int, nep-mig, nep-soc and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:cegedp:198

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