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Heterogeneous Effect of Ethnic Networks on International Trade of Thailand: The Role of Family Ties and Ethnic Diversity

Duanmu, J-L and Guney, Y (2012) Heterogeneous Effect of Ethnic Networks on International Trade of Thailand: The Role of Family Ties and Ethnic Diversity International Business Review, volume. ISSN 0969-5931

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Abstract

Ethnic networks have been found to have a pro-trade effect in previous research. However, the heterogeneous effect of different ethnicities is under-studied. Drawing on the literature on social structure, this paper attempts to untangle the heterogeneous effect of ethnic networks on international trade using trade data of Thailand. We found that ethnic networks have a positive impact overall on trade, confirming the results of previous studies. However, the magnitude of the positive effect varies across different ethnicities along two dimensions. First, the strength of family ties in the culture of origin accelerates the pro-trade effect of its ethnic networks, suggesting ethnicities with stronger family ties have a cultural preference for trading within their own ethnic community. In comparison, ethnic diversity weakens the positive effect of ethnic networks on trade, suggesting an informational value of diverse ethnic structure in promoting trade between different ethnicities. Our study contributes new evidence of the enduring influence of social and cultural attributes on economic activities. Keywords:

Item Type: Article
Additional Information: NOTICE: This is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review (volume forthcoming), March 2012, DOI 10.1016/j.ibusrev.2012.02.009.
Divisions: Faculty of Business, Economics and Law > Surrey Business School
Depositing User: Symplectic Elements
Date Deposited: 03 Sep 2012 14:58
Last Modified: 18 Sep 2014 01:40
URI: http://epubs.surrey.ac.uk/id/eprint/310263

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