Networks in the Diaspora

30 Pages Posted: 6 Apr 2016

See all articles by Gil S. Epstein

Gil S. Epstein

Bar-Ilan University - Department of Economics; IZA Institute of Labor Economics; University College London - CReAM - Centre for Research and Analysis of Migration

Odelia Heizler-Cohen

Hebrew University of Jerusalem; IZA Institute of Labor Economics

Date Written: March 2016

Abstract

In this paper, we examine possible types of network formation among immigrants in the diaspora and between those immigrants and the locals in different countries. We present the model by considering different possible interactions between immigrants and the new society in their host country. Spread of migrants from the same origin in the diaspora may well increase international trade between the different countries, depending on the types of networks formed. We present possible applications of network structure on the country of origin, such as on international trade. We find that when the size of the diaspora is sufficiently large, the natives in the different countries will be willing to bear the linking cost with the immigrants because the possible benefits increase with increasing size of the diaspora.

Keywords: Immigrants, Networks, Diaspora

JEL Classification: D85, D74, J61, L14

Suggested Citation

Epstein, Gil S. and Heizler-Cohen, Odelia, Networks in the Diaspora (March 2016). Centro Studi Luca d'Agliano Development Studies Working Paper No. 389, Available at SSRN: https://ssrn.com/abstract=2759348 or http://dx.doi.org/10.2139/ssrn.2759348

Gil S. Epstein (Contact Author)

Bar-Ilan University - Department of Economics ( email )

Ramat-Gan, 52900
Israel
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HOME PAGE: http://faculty.biu.ac.il/~epsteig/

IZA Institute of Labor Economics ( email )

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Germany

University College London - CReAM - Centre for Research and Analysis of Migration ( email )

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Odelia Heizler-Cohen

Hebrew University of Jerusalem ( email )

Mount Scopus
Jerusalem, Jerusalem 91905
Israel

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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