Comparing the Networks of Ethnic Japanese and Ethnic Chinese in International Trade

Kumagai Satoru

No 113, IDE Discussion Papers from Institute of Developing Economies, Japan External Trade Organization(JETRO)

Abstract: In this paper I re-examined the trade enhancing effects of ethnic Chinese networks, found by Rauch and Trindade (2002), on a newer and extended data set. The effects are estimated by the gravity equation with the product of the population ratio (or absolute number) of the ethnic Chinese in both the importing and exporting countries, and are reaffirmed positive and statistically significant. I also compared the effects of two different ethnic Japanese networks, i.e., the networks of long-term Japanese stayers in foreign countries, and the networks of permanent Japanese residents in foreign countries. It is found that the former has stronger trade enhancing effects than the latter. This shows that the effects of ethnic networks on international trade can be generalized beyond the ethnic Chinese, and the ’cohesiveness’ of the ethnic network matters to the trade enhancing effects of the network.

Keywords: Trade; Networks; East Asia; China; Japan; International trade; Overseas Chinese; Overseas Japanese; 貿易; ネットワーク; 東アジア; 中国; 日本; 華僑; 在外邦人 (search for similar items in EconPapers)
JEL-codes: F10 (search for similar items in EconPapers)
Date: 2007-07-01
New Economics Papers: this item is included in nep-cna, nep-int, nep-mig, nep-net, nep-sea and nep-soc
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Published in IDE Discussion Paper = IDE Discussion Paper, No. 113. 2007-07-01

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