Business Intelligence

Social Interactions Of Migrants And Trade Outcomes

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Executive Summary

This paper investigates the social interactions performed by immigrants in France. A framework for immigrant's choice of location is based on recent studies on non-market interactions which explain how migrants concentrate. Applying data on the distribution of immigrants in 95 French provinces, the social interactions are subsequently estimated. This "Social component" of migration is then tested on international trade, providing a direct measure of the impact of social networks on the economy. The trade of a certain region is determined not only by the social interactions of immigrants within the region, but also by the social interactions of the whole network of immigrants living in the country. This measure of network is more robust than those measures in previous research.

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