Overcoming Informational Barriers to International Resource Allocation: Prices and Ties

Rauch, James E.; Casella, Alessandra

doi:10.1111/1468-0297.00090

Cited by 231 publications

(112 citation statements)

References 28 publications

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“…The argument is that emigration creates trade and business networks, and promotes technology diffusion. There is strong evidence that immigration indeed increases bilateral trade (Gould, 1994), and more so for trade in differentiated products where migration networks allow for overcoming information asymmetries Trindade 2002, Rauch andCasella, 2003). It has also been argued that immigration-induced business networks favor FDI and technology diffusion.…”

Section: Conventional Versus New Economic Approachesmentioning

confidence: 99%

Migration selectivity and the evolution of spatial inequality

Kanbur¹,

Rapoport²

2005

Journal of Economic Geography

151

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1The basic neoclassical model of migration suggests that migration is induced by real income differentials across locations and will, ceteris paribus, serve to reduce those differentials. And yet there is evidence on growing spatial inequality despite increased migration from poorer to richer areas. At a theoretical level, one route to addressing this potential inconsistency is to introduce agglomeration effects into the standard neoclassical setup. This paper explores an alternative route, based on a theoretical and empirical proposition of the migration literature, namely, that migration is a selective process. Focusing on skilled migration, the paper demonstrates the different forces in play that make selective migration a force for both divergence and convergence, and characterizes where each set of forces dominates. Finally, it explores the consequences for convergence of combining both migration selectivity and agglomeration effects arising from migrant networks.

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Section: Conventional Versus New Economic Approachesmentioning

confidence: 99%

Migration selectivity and the evolution of spatial inequality

Kanbur¹,

Rapoport²

2005

Journal of Economic Geography

151

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“…This paper aims precisely at filling this gap in the literature, estimating a discrete-choice, latent index model using trade support and highly disaggregated export data for the whole population of exporters of a small developing country, Uruguay, over the period 2000-2007. 3 Incomplete information creates frictions in matching between buyers and sellers across national borders and can therefore become an important obstacle to developing export activities (see, e.g., Rangan and Lawrence, 1999;Rauch and Casella, 2003;and Huang, 2007). Information gaps are particularly pronounced in the case of differentiated products.…”

Section: Introductionmentioning

confidence: 99%

Entering new country and product markets: does export promotion help?

Martincus

Carballo

2010

Rev World Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Entering new export markets is primarily a discrete choice. Even though several empirical papers have used modeling strategies consistent with this fact, no study has examined the effects of public policies aimed at affecting this decision within this setting. In this paper we assess the impact of trade promotion activities on export outcomes using trade support and highly disaggregated export data for the whole population of exporters of a small developing country, Uruguay, over the period 2000-2007 to estimate a binary outcome model which allows for unobserved heterogeneity. We find that trade supporting activities have helped firms reach new destination countries and introduce new differentiated products. We would like to thank URUGUAY XXI which kindly provided us with export and trade promotion assistance data for Uruguayan firms. We also wish to thank Alberto Abadie, who kindly shared with us the code to implement his semi-parametric difference-indifferences estimator; and Juan Blyde, Mauricio Mesquita Moreira, and Matthew Shearer for valuable comments and suggestions. We owe gratitude to Mariana Sobral de Elia for competent editing assistance. Usual disclaimers apply. Terms of use: Documents in2

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“…Search becomes more difficult, the more geographically dispersed economic opportunities and potential trading partners are, while the importance of deliberation increases with the cost of reversing allocative actions or their effects (see Rangan and Lawrence, 1999). Hence, information discontinuities make it difficult for firms to find a suitable trade partner, i.e., they create matching frictions and this inadequate information about international trading opportunities may hinder exports (see Rauch and Casella, 2003;and Portes and Rey, 2005). Further, due to potential free-riding originating from information spillovers, investment in search for foreign buyers may be sub-optimally low (see Rauch, 1996).…”

Section: Introductionmentioning

confidence: 99%

Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports

Martincus

Carballo

2008

Journal of International Economics

200

119

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. How effective are export promotion activities in developing countries? What are the channels through which export promotion affects firms' exports, the intensive margin or the extensive margin? Empirical evidence in this respect is scarce. We aim at filling this gap in the literature by providing evidence on the impact of export promotion on export performance using a unique firm-level dataset for Peru over the period [2001][2002][2003][2004][2005]. We find that export promotion actions are associated with increased exports, primarily along the extensive margin, both in terms of markets and products. This result is robust across alternative specifications and estimation methods. Terms of use: Documents in

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Overcoming Informational Barriers to International Resource Allocation: Prices and Ties

Cited by 231 publications

References 28 publications

Migration selectivity and the evolution of spatial inequality

Migration selectivity and the evolution of spatial inequality

Entering new country and product markets: does export promotion help?

Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports

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