Using a sample of 63 U.S. trading partners that constitute the major immigrant sending countries over the years 1991-2000 and using instrumental variable estimation this paper finds that the immigrant trade elasticity varies with the share of the immigrants in various occupation groups. The share of professional immigrants significantly increases the immigrant trade elasticity for all types of trade due to their ability to effectively use their network for trade creation. This effect is strongest for the Rauch's differentiated imports where the immigrant specific home country information and immigrant demand for goods play a key role in increasing trade.
All Science Journal Classification (ASJC) codes
- Economics, Econometrics and Finance(all)
- Business and International Management
- United States
- immigrant networks
- immigrant occupation
- instrumental variable