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dc.contributor.authorMundra, Kusumen_US
dc.date.accessioned2011-06-20en_US
dc.date.accessioned2011-06-28T13:55:40Z-
dc.date.available2011-06-28T13:55:40Z-
dc.date.issued2010en_US
dc.identifier.urihttp://hdl.handle.net/10419/46120-
dc.description.abstractThis paper examines the role of immigrant networks on trade, particularly through the demand effect. First, we examine the effect of immigration on trade when the immigrants consume more of the goods that are abundant in their home country than the natives in a standard Heckscher-Ohlin model and find that the effect of immigration on trade is a priori indeterminate. Our econometric gravity model consists of 63 major trading and immigrant sending countries for the US over 1991-2000. We find that the immigrants' income, mostly through the demand effect, has a significant negative effect on US imports. However, if we include the effect of the immigrant income interacted with the size of the immigrant network, measured by the immigrant stock, we find that the higher the immigrant income the lower is the immigrant network effect for both US exports and imports. This we find in addition to the immigrant stock elasticity of 0.27% for US exports and 0.48% for US imports. Capturing the immigrant assimilation with the level of immigrant income, this paper finds that the immigrant network effect on trade flows is weakened by the increasing level of immigrant assimilation.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5237en_US
dc.subject.jelF22en_US
dc.subject.jelF11en_US
dc.subject.jelJ10en_US
dc.subject.ddc330en_US
dc.subject.keywordimmigrant networksen_US
dc.subject.keywordimmigrant assimilationen_US
dc.subject.keyworddemand effecten_US
dc.subject.keywordtradeen_US
dc.titleImmigrant networks and US bilateral trade: The role of immigrant incomeen_US
dc.typeWorking Paperen_US
dc.identifier.ppn662487052en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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