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Full-Text Articles in Economics

A Closer Look At The Determinants Of International Migration: Decomposing Cultural Distance, Roger White Apr 2018

A Closer Look At The Determinants Of International Migration: Decomposing Cultural Distance, Roger White

Economics

Using a modified gravity model and three measures of cultural distance, we employ the zeroinflated negative binomial estimation technique to examine the impact of cultural distance on international migration flows. We confirm the finding of prior studies that there exists a negative relationship between composite measures of cultural distance and immigrant flows. Extending the literature, we decompose our composite cultural distance measures into their component dimensions to examine potential variability in the influences of individual dimensions on international migration. We find the cultural dimensions that reflect individualism, uncertainty avoidance, and perceived gender roles are typically more influential in determining immigrant …


Does China’S Trade Defy Cultural Barriers?, Roger White, Bedassa Tadesse, Huang Zhongwen Mar 2017

Does China’S Trade Defy Cultural Barriers?, Roger White, Bedassa Tadesse, Huang Zhongwen

Economics

Using annual data for China and 88 trading partners that span the period 1995–2011, we estimate whether cross-societal cultural differences influence China’s external trade flows. Our results, obtained from the estimation of a series of multi-level mixed effect random intercepts and coefficients models, indicate that China’s aggregate exports and imports are largely unaffected by the cultural distance between China and its trading partners. Examination of disaggregate trade measures and consideration of the underlying dimensions of our composite cultural distance variable produces a largely similar result. Taken collectively, our results suggest that China’s trade is less affected by cultural distance than …


Immigrants, Cultural Distance, And Trade Costs, Roger White, Bedassa Tadesse Feb 2017

Immigrants, Cultural Distance, And Trade Costs, Roger White, Bedassa Tadesse

Economics

We examine the effects of immigrants and cross-societal cultural differences on bilateral trade costs using two alternative measures of cultural differences (i.e. cultural distance and genetic distance). We find that bilateral trade costs generally increase with a rise in the cultural distance between trading partners but fall with a rise in the stock of immigrants. This implies that immigrants counter bilateral trade costs that are associated with greater cultural differences. Our observation is relevant from both migration and trade policy perspectives as it provides further evidence that immigrants serve as conduits for bridging cultural differences, facilitate international transactions, and enhance …


Do Immigrants Affect The Profiles Of Us Exporters?, Roger White, Bedassa Tadesse Apr 2016

Do Immigrants Affect The Profiles Of Us Exporters?, Roger White, Bedassa Tadesse

Economics

We highlight that an increase in the stock of immigrants corresponds with greater numbers of U.S. firms that engage in exporting to foreign markets. Our results are obtained from the estimation of a multi-level mixed effects model. Overall, the effect of immigrants is relatively larger among small- and medium-sized enterprises and is smaller among large-sized enterprises. There are, however, considerable differences, both in the magnitude and in nature of the observed effects of immigrants on manufactured and non-manufactured goods exporters of comparable size categories. Similarly, heterogeneity is found in the effects of immigrants on the numbers of small-, medium-, and …


A Culture Shaped By Immigrants: Examining The Consequences Of U.S. Immigration Policy, Roger White, Shane Francis Jan 2016

A Culture Shaped By Immigrants: Examining The Consequences Of U.S. Immigration Policy, Roger White, Shane Francis

Economics

We examine U.S. immigration history both by recounting the related legislative history and by examining data on immigrant inflows and inflow shares during the period from 1820 through 2013. A descriptive analysis of the cultural differences between the U.S. and several cohorts of countries suggests that U.S. culture has been shaped by the pattern of immigrant arrivals. Broadly stated, American culture has evolved to be similar to those of European societies (predominantly, countries in Northern and Western Europe) and to largely be dissimilar to the cultures of other regions. Following the enactment of the Hart-Celler Act in 1968, the primary …


Comparing Advantages: Us Trade With The Rest Of The World, 1968-2008, Roger White, David Buelher Sep 2015

Comparing Advantages: Us Trade With The Rest Of The World, 1968-2008, Roger White, David Buelher

Economics

Calibrating a stylized version of the Dornbusch-Fischer-Samuelson model, this paper finds that relative to a cohort of 97 trading partners, the US capital stock, labor force, and nominal GDP per capita decreased, while the level of technology embodied in its output increased. These observed dynamics suggest a shift in comparative advantage that, coupled with increased production at the extensive and intensive margins, yields an expectation of labor market churning. Grouping trading partners by World Bank income classifications reveals that observed changes for low and lower middle income cohorts resulted in more pronounced shifts in comparative advantage. Examining employment and earnings …


Do Immigrants Reduce Bilateral Trade Costs? An Empirical Test, Roger White, Bedassa Tadesse Jul 2015

Do Immigrants Reduce Bilateral Trade Costs? An Empirical Test, Roger White, Bedassa Tadesse

Economics

We use the first comprehensive estimates of bilateral trade costs to test the extensively stated, but rarely evaluated, hypothesis that immigrants reduce trade-related transaction costs. Our results provide robust and direct evidence supporting this often-posited hypothesis. We examine the period from 1995 through 2010 using data that represent 174 immigrant home countries and 19 OECD member host countries. We find that a 10% increase in the stock of immigrants from a given home country that reside in a given host country corresponds with a 1.04% decrease in the overall bilateral trade costs between the home and host countries. While different …


A Simple Solution To The Distance Puzzle: Balanced Data And Poisson Estimation, Roger White, David Buehler Feb 2015

A Simple Solution To The Distance Puzzle: Balanced Data And Poisson Estimation, Roger White, David Buehler

Economics

We propose the use of a balanced panel data set and Poisson regression as a solution to the distance puzzle. Employing annual data for the period 1972–2010, we confirm the existence of the puzzle by applying OLS regression to both an unbalanced panel data set and a narrowly defined balanced panel. We find that Poisson regression remedies the distance puzzle, producing a constant trend for the distance coefficient when the unbalanced panel is examined and a positive trend for the balanced data. The findings confirm the common intuition that the influence of transport costs on trade flows has decreased over …


Source-Destination Cultural Differences, Immigrants’ Skill Levels, And Immigrant Stocks: Evidence From Six Oecd Member Host Countries, Roger White, Nicole Yamasaki Aug 2014

Source-Destination Cultural Differences, Immigrants’ Skill Levels, And Immigrant Stocks: Evidence From Six Oecd Member Host Countries, Roger White, Nicole Yamasaki

Economics

Examining data for 79 immigrant source countries and six OECD member destination countries during the years 1975–2000, we find that source-destination cultural differences inhibit international migration. We also report that existing immigrant stocks act to offset, at least in part, the migration-inhibiting effects of cultural differences. Employing educational attainment as a proxy for skill, we find variation across low-, medium-, and high-skilled immigrant cohorts both with respect to the cultural distance-migration relationship and in terms of the extent to which existing immigrant stocks offset the influence of cultural differences. Our results appear robust to econometric techniques, sample composition, and endogeneity …


A Factor Endowment Explanation For China’S Emergence As An International Trading Power: Calibrating The Dornbusch-Fischer-Samuelson Model For China’S Trade, 1968-2008, Roger White Jan 2014

A Factor Endowment Explanation For China’S Emergence As An International Trading Power: Calibrating The Dornbusch-Fischer-Samuelson Model For China’S Trade, 1968-2008, Roger White

Economics

Much has been made of the rise of China‘s economy and its emergence as a global trading power. Standard trade theory holds that comparative advantage is the basis for mutually beneficial exchange and, as such, it is the basis for international trade. In this chapter, we examine changes in labor supplies, capital stocks, and technology as possible explanations for the rise of China as an international trading power. Calibration of the Dornbusch-Fisher-Samuelson model suggests that China has gained comparative advantage relative to the US and to the cohort of high income countries considered in this study. Even though US production …


Do African Immigrants Enhance Their Home Nations’ Trade With Their Hosts?, Roger White, Bedassa Tadesse Oct 2013

Do African Immigrants Enhance Their Home Nations’ Trade With Their Hosts?, Roger White, Bedassa Tadesse

Economics

Employing data on the immigrant stocks of 43 African home countries who reside in 110 host countries and on trade flows between these countries during the year 2005, we examine whether African immigrants exert positive effects on their home countries’ trade with the typical host country. Estimates from Tobit regression models indicate a one percent increase in the number of African immigrants in a given host country increases that country’s exports to and imports from the typical home country by 0.132 percent and 0.259 percent, respectively. Further evaluation of these effects from the perspective of each African home country reveals …


Is Cultural Distance A Determinant Of International Migration Flows? Evidence From Denmark, Germany, And The Netherlands, Roger White Aug 2013

Is Cultural Distance A Determinant Of International Migration Flows? Evidence From Denmark, Germany, And The Netherlands, Roger White

Economics

We examine the relationship between source-destination country cultural differences and international migration flows using data for three immigrant destination countries (i.e., Denmark, Germany, and the Netherlands) and a cohort of 66 heterogeneous immigrant source countries during the years 1997-2002. Results obtained from the estimation of our empirical specifications using the Negative Binomial regression technique indicate that, all else equal, cultural distance is negatively related to migration flows and that larger existing immigrant stocks correspond with larger subsequent migration flows. These findings are consistent with the results reported in Belot and Ederveen (2012). Extending the literature, we report that existing immigrant …


Do Immigrants Enhance International Trade In Services? The Case Of Us Tourism Services Exports, Roger White, Bedassa Tadesse Nov 2012

Do Immigrants Enhance International Trade In Services? The Case Of Us Tourism Services Exports, Roger White, Bedassa Tadesse

Economics

That immigrants affect trade in goods between their home and host countries is well established in the literature. Little evidence exists, however, as to whether immigrants also affect trade in services. Using data on international tourist arrivals from 86 countries to the United States during the years 1995–2004, we provide the first empirical evidence on the effect of immigrants on exports of tourism services. Our results suggest that immigrants significantly enhance exports of tourism services (as measured by the number of tourist arrivals in the US from different home countries).


Us Manufacturing And Vertical/Horizontal Intra-Industry Trade: Examining The Smooth Adjustment Hypothesis, Roger White, Cheng Chen Feb 2012

Us Manufacturing And Vertical/Horizontal Intra-Industry Trade: Examining The Smooth Adjustment Hypothesis, Roger White, Cheng Chen

Economics

Using data that represent the six-digit North American Industrial Classification System-classified industries that comprise the US manufacturing sector and that span the years 1989–2005, we test the validity of the smooth adjustment hypothesis (SAH). To our knowledge, this is the first examination of the SAH for the USA. The results of our empirical analysis are consistent with the confirmation of the SAH. Further, using measures of vertical marginal intra-industry trade and of horizontal marginal intra-industry trade, we find that the latter has a stronger effect on employment of production workers than does the former. The findings suggest that for total …


Emigrant Effects On Bilateral Trade: Reexamining The Immigrant-Trade Link From The Home Country Perspective, Roger White, Bedassa Tadesse Mar 2011

Emigrant Effects On Bilateral Trade: Reexamining The Immigrant-Trade Link From The Home Country Perspective, Roger White, Bedassa Tadesse

Economics

A voluminous literature examines the immigrant-trade link. Available studies evaluate the link largely from the host country perspective and generally indicate that immigrants exert positive influences on trade between their host and home countries. Few studies, however, explore the effects of emigrants on trade. Using data representing the stocks of emigrants from 131 home countries that resided in 110 host countries during the year 2005, we examine the immigrant/emigrant-trade link from both the home country perspective and the host country perspective. Doing so, we provide the first comprehensive estimates of pro-trade emigrant effects for each home country in our study.


The Effects Of Refugee And Non-Refugee Immigrants On Us Trade With Their Home Countries, Roger White, Bedassa Tadesse Jun 2010

The Effects Of Refugee And Non-Refugee Immigrants On Us Trade With Their Home Countries, Roger White, Bedassa Tadesse

Economics

Employing data on US immigrants and trade with 59 home countries for the years 1996–2001, we compare the extent to which refugee and nonrefugee immigrants affect US trade with their home countries and provide the first evidence of variation in the US immigrant–trade relationship across immigrant types. We also consider the abilities of refugee and non-refugee immigrants to offset the trade-inhibiting influence of cultural distance. Our results show that while immigrants, in general, exert positive influences on US imports from – and exports to – their home countries, the influence of refugee immigrants is quite minimal when compared with that …


Long-Run Wage And Earnings Losses Of Displaced Workers, Roger White May 2010

Long-Run Wage And Earnings Losses Of Displaced Workers, Roger White

Economics

Displacement-related losses are estimated using National Longitudinal Survey of Youth data that span the years 1979–2000. The typical displaced worker faces losses of $34,065 during the period 4 years prior through 5 years following displacement. Proportionally, this represents a 10.8% loss compared to earnings of similar nondisplaced workers over the period. Considerable variation in losses is reported across worker types. Union, male and more mature workers suffer greater losses, respectively, than do their nonunion, female and younger counterparts. College graduates and high school dropouts are found to suffer lower losses compared to high school diploma holders and those who completed …


Does Cultural Distance Hinder Trade In Goods? A Comparative Study Of Nine Oecd Member Nations, Roger White, Bedassa Tadesse Apr 2010

Does Cultural Distance Hinder Trade In Goods? A Comparative Study Of Nine Oecd Member Nations, Roger White, Bedassa Tadesse

Economics

We examine the effect of cultural distance, a proxy for the lack of a minimum reservoir of trust necessary to initiate and complete trade deals, on bilateral trade flows. Employing data for 67 countries that span the years 1996– 2001, we estimate a series of modified gravity specifications and find that cultural dissimilarity between nations has an economically significant and consistently negative effect on aggregate and disaggregated trade flows; however, estimated effects vary in magnitude and economic significance across measures of trade and our cohort of OECD reference countries. The consistently negative influence of cultural distance indicates that policymakers may …


Cultural Distance As A Determinant Of Bilateral Trade Flows: Do Immigrants Counter The Effect Of Cultural Distance?, Roger White, Bedassa Tadesse Feb 2010

Cultural Distance As A Determinant Of Bilateral Trade Flows: Do Immigrants Counter The Effect Of Cultural Distance?, Roger White, Bedassa Tadesse

Economics

We introduce ‘cultural distance’ as a measure of the degree to which shared norms and values in one country differ from those in another country, and employ a modified gravity specification to examine whether such cultural differences affect the volume of trade flows. Employing data for US statelevel exports to the 75 trading partners for which measures of cultural distance can be constructed, we find that greater cultural differences between the United States and a trading partner reduces state-level exports to that country. This result holds for aggregate exports, cultural and noncultural products exports as well, but with significantly different …


Cultural Diversity, Immigration And Trade: A Study Of Nine Oecd Host Countries, Roger White, Bedassa Tadesse Jan 2010

Cultural Diversity, Immigration And Trade: A Study Of Nine Oecd Host Countries, Roger White, Bedassa Tadesse

Economics

Employing data from nine OECD countries and 67 trading partners for the years 1996-2001, we examine the inter-relationships between immigration, cultural diversity and trade. We find greater cultural differences between immigrants’ host and home countries inhibit trade flows. However, immigrants exert pro-trade influences that partially offset the effect of cultural distance. We also find that greater cultural diversity within the immigrants’ host countries is associated with the creation of trade between immigrants’ host and home countries. The findings suggest that the ability of immigrants to influence their host’s trade with their home countries depends, in part, on the characteristics of …


Cultural Diversity, Immigration And International Trade: An Empirical Examination Of The Relationship In Nine Oecd Countries, Roger White, Bedassa Tadesse Jan 2010

Cultural Diversity, Immigration And International Trade: An Empirical Examination Of The Relationship In Nine Oecd Countries, Roger White, Bedassa Tadesse

Economics

Employing a variant of the standard gravity equation and data from nine OECD immigrant host countries and 67 trading partners for the years 1996-2001, we examine the immigrant-trade relationship. Particular emphasis is placed on the potential influences of host country cultural diversity and host-home cultural distance. Data from the World Values Surveys and the European Values Surveys are used to calculate the cultural distances between immigrants’ host and home countries. Cultural distance is taken to be a proxy measure for the extent to which immigrants’ host countries are culturally divergent from their home countries. To estimate the cultural diversity of …


Displacement-Related Earnings Losses: Evaluating Trade Adjustment Assistance And Wage Insurance, Roger White Jun 2009

Displacement-Related Earnings Losses: Evaluating Trade Adjustment Assistance And Wage Insurance, Roger White

Economics

The author examines the effectiveness of stylized versions of the Trade Adjustment Assistance (TAA) and Alternative TAA (or wage insurance) programs in reducing displacement-related earnings losses. Wage insurance subsidies and returns to TAAfunded training are applied to estimates of proportional earnings losses, reported by White, that were generated using National Longitudinal Survey of Youth 1979 data spanning the period from 1979 to 2000. Wage insurance reduces the typical worker’s losses by 14.4 percent, while TAA-funded training is estimated to reduce losses by 23.7 percent. However, variation in the time paths and magnitudes of losses produces considerable variation in the effects …


Immigration, Trade And Home Country Development: State-Level Variation In The Us Immigrant-Export Link, Roger White, Bedassa Tadesse May 2009

Immigration, Trade And Home Country Development: State-Level Variation In The Us Immigrant-Export Link, Roger White, Bedassa Tadesse

Economics

This article examines the pro-trade influence of immigrants using data on state-level exports from the 48 contiguous USA to 28 countries during the year 1993. Immigrants from lesser developed countries are found to exert stronger proportional effects on state-level exports relative to the immigrants from more developed countries. Calculation of absolute immigrant effects at state, regional and national levels also reveal influences of immigrants from developing countries are of greater magnitude; however, results depend on the metric employed to categorize countries as developing or developed. The findings emphasize the importance of immigrants’ connections to business and social networks and allow …


Political Affiliation And Perceptions Of Trade: Examining Survey Data From The State Of Georgia, Roger White, Richard Clark Apr 2009

Political Affiliation And Perceptions Of Trade: Examining Survey Data From The State Of Georgia, Roger White, Richard Clark

Economics

We examine the influences of political party affiliation and self-identification as politically conservative, centrist, or liberal on individuals’ trade preferences. Majority support for trade is reported for all political classifications, with Republicans found to be 13.7%–15.1% more likely than Democrats and independents to support trade. Similarly, conservatives are 14.8%–21% more likely to support trade than are centrists and liberals; however, distinctions exist between ‘‘very conservative’’ and ‘‘somewhat conservative’’ cohorts.


East-West Migration And The Immigrant-Trade Link: Evidence From Italy, Roger White, Bedassa Tadesse Apr 2009

East-West Migration And The Immigrant-Trade Link: Evidence From Italy, Roger White, Bedassa Tadesse

Economics

Employing data for Italy and 68 trade partners that span the period 1996 2001, we examine the role of immigrants in influencing Italian exports to and imports from their respective home countries. Particular emphasis is placed on variation in the immigrant-trade relationship across Former Soviet Republic (FSR) and Post-Communist (PCOM) country classifications relative to immigrants from non-FSR and non-PCOM countries. The findings provide information that may assist in policy formulation and lead to more enlightened public and political debates of the issue. Immigrants are generally found to exert pro-trade influences, with proportional immigrant effects being somewhat …


Immigration, Trade And Product Differentiation, Roger White Mar 2009

Immigration, Trade And Product Differentiation, Roger White

Economics

Immigrant-trade links are examined with an emphasis placed on variation across product types and home country income classifications. Data for the US and 70 trading partners spanning the 1980-1997 period are employed. We find the immigrant-trade relationship varies based on degree of product differentiation and by home country per-capita income. In response to a hypothetical 10 percent increase in the immigrant stock variable, US imports of differentiated goods from high income countries increase by approximately 2 percent. A like increase in the immigrant stock from low income countries increases US differentiated goods imports by 4.25 percent, while exports of homogenous …


State And Regional Variation In The Effects Of Trade On Job Displacement In The Us Manufacturing Sector, 1982-1999, Roger White Dec 2008

State And Regional Variation In The Effects Of Trade On Job Displacement In The Us Manufacturing Sector, 1982-1999, Roger White

Economics

Worker-level data from the 1984–2000 Displaced Worker Surveys are employed to examine the effects of trade on manufacturing workers’ probabilities of job displacement. Observed changes in import and export penetration rates yield increases in displacement probabilities for the North Central, Middle Atlantic and South Central regions yet lower displacement probabilities for the Plains/West and Pacific regions. Changes in import and export price indexes lead to increases in displacement probabilities for the Pacific, Southeast and Northeast regions and decreases for the South Central and Middle Atlantic regions. However, while the influences of imports and exports on job displacement vary considerably across …


Do Immigrants Counter The Effect Of Cultural Distance On Trade? Evidence From Us State-Level Exports, Roger White, Bedassa Tadesse Dec 2008

Do Immigrants Counter The Effect Of Cultural Distance On Trade? Evidence From Us State-Level Exports, Roger White, Bedassa Tadesse

Economics

We examine the effects of immigrants and cultural distance on US state-level exports, placing emphasis on the extent to which immigrants may offset the influence of cultural distance with respect to the initiation and intensification of exports. Our findings suggest that greater cultural differences between the US and immigrants’ home countries reduce both the likelihood that exporting occurs and, when exporting is taking place, the level of exports. Immigrants are found to exert pro-export effects that offset, at least partially, the trade-inhibiting effects of cultural distance. The estimated effects of both cultural distance and immigrants are found to be greater …


Immigrants, Cultural Distance And Us State-Level Exports Of Cultural Products, Roger White, Bedassa Tadesse Dec 2008

Immigrants, Cultural Distance And Us State-Level Exports Of Cultural Products, Roger White, Bedassa Tadesse

Economics

We examine the relationships between immigrants, cultural distance and state-level exports, employing state-specific immigrant stocks and total US immigrant stocks, separately, and a measure of cultural distance recently introduced by [Tadesse, B., & White, R. (2008b). Cultural distance as a determinant of bilateral trade flows: Do immigrants counter the effect of cultural distance? Applied Economic Letters]. A positive link between immigrants and aggregate exports is reported and, while cultural distance is found to reduce exports, immigrants partially offset the effects of cultural distance by increasing both the intensity of existing exports and the likelihood that exporting occurs. However, heterogeneity in …


Cultural Distance And The Us Immigrant-Trade Link, Roger White, Bedassa Tadesse Aug 2008

Cultural Distance And The Us Immigrant-Trade Link, Roger White, Bedassa Tadesse

Economics

Using data from the World and the European Values Surveys, we calculate cultural distances between the US and 54 immigrant home countries and examine the influences of cultural distance and immigrant populations on US imports from and exports to immigrants’ home countries during the years 1997–2004. Our study indicates that, for both US imports and exports, the trade‐enhancing effect of immigrants partially offsets the trade‐inhibiting effect of cultural distance. Further, decomposing our measure of cultural distance into two component dimensions and revisiting the immigrant–trade relationship, we find significant variation in the extent to which immigrants counter the trade‐inhibiting influences of …