CEU Electronic Theses and Dissertations, 2013
| Author | Horváth, Krisztina |
|---|---|
| Title | The Trade-Creating Effect of Emigrant Networks: A Global Approach |
| Summary | In this thesis I investigate the effect of emigration on international export flows. The main contribution of this paper is that it puts the country-specifi c findings of the corresponding literature into a new comprehensive cross-country perspective using a world-wide dataset. A further development of this paper is that it ensures the consistency of its results by exploiting information about the extensive margin of trade as well: contrary to previous papers I pay special attention to the large proportion of observations with zero trade flows between countries, and I implement a two-step estimation procedure recently developed by Helpman, Melitz and Rubinstein (2008) that is able to simultaneously correct for the potential selection bias and the bias from asymmetric trade flows between pairs of countries. My findings confi rm the previously documented positive effect of migration on trade fl ows for the whole world as well; however I show that it is subject to a critical level of development in both the origin and the destination countries. My results also reveal that the main source of this positive relationship is the trade facilitating role of the information networks maintained by emigrant diasporas. |
| Supervisor | Szeidl, Ádám |
| Department | Economics MA |
| Full text | https://www.etd.ceu.edu/2013/horvath_krisztina.pdf |
Visit the CEU Library.
© 2007-2021, Central European University