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Does human migration affect international trade? A complex-network perspective.

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Summary
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International human migration and merchandise trade are strongly linked. Countries more central in global migration networks tend to engage in more bilateral trade, influenced by migrant presence and network embeddedness.

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Area of Science:

  • Economics
  • Sociology
  • Network Science

Background:

  • Understanding the intricate relationship between international human migration and merchandise trade is crucial for global economic and social policy.
  • Previous research has often examined these phenomena in isolation or with simpler analytical tools.

Purpose of the Study:

  • To investigate the topological connections between global human migration and merchandise trade networks.
  • To determine if a country's position within the migration network influences its bilateral trade flows.

Main Methods:

  • Utilized a complex-network approach to analyze worldwide human migration and bilateral trade data from 1960 to 2000.
  • Compared the structural properties of both weighted and binary network representations.

Main Results:

  • Found strong correlations between the network structures of international migration and merchandise trade.
  • Economic and demographic size, along with geographical distance, significantly explain these correlations.
  • Countries with higher centrality in the migration network exhibit increased bilateral trade.

Conclusions:

  • Bilateral trade is influenced not only by the direct presence of migrants but also by a country's embeddedness within the broader international migration network.
  • The findings highlight the interconnectedness of migration and trade, suggesting a complex interplay shaped by network structures.