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Ethnic networks and trade: intensive vs. extensive margins

By Cletus C. Coughlin and Howard J. Wall


Ethnic networks?as proxies for information networks?have been associated with higher levels of international trade. Previous research has not differentiated between the roles of these networks on the extensive and intensive margins. The present paper does so using a model with fixed effects, finding that ethnic networks increase trade on the intensive margin but not on the extensive margin.International trade ; Exports

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  1. (2005). Controlling for Heterogeneity in Gravity Models of Trade and Integration,‖ Federal Reserve Bank of St.
  2. (2010). Deconstructing Gravity: Trade Costs and Extensive and Intensive Margins,‖
  3. (2008). Ethnic Networks and State Exports,‖

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