Dm. Gould, IMMIGRANT LINKS TO THE HOME COUNTRY - EMPIRICAL IMPLICATIONS FOR UNITED-STATES BILATERAL TRADE-FLOWS, Review of economics and statistics, 76(2), 1994, pp. 302-316
Immigrants' ties to their home countries can play a key role in foster
ing bilateral trade linkages. Immigrant ties include knowledge of home
-country markets, language, preferences, and business contacts that ha
ve the potential to decrease trading transaction costs. Empirical resu
lts for the United States suggest that immigrant links have historical
ly been important in increasing bilateral trade flows with immigrants'
home countries.