An Evolutionary Interpretation of Ethnic Networks: The Chinese Example (original) (raw)

2007, Proceedings of - The 10th International Conference of the Society for Global Business & Economic Development, Vol. 1, ISBN-13: 978-0-9797659-1-9, ISBN-10: 0-9797659-1-9, CD Version: ISBN-13: 978-0-9797659-0-2, ISBN-10: 0-9797659-0-0

The significance of ethnic networks in the international environment has been recently emphasized by a wide range of studies, both from the theoretical as well as the empirical point of view. The ethnic networks represent complexes of interpersonal ties that allow to overcome the informal barriers in the international trade (costs of information, risk and uncertainty), by building mutual trust between the counterparts. Starting from the literature analysis, this paper try to deepen the subject by reassessing the definition of ethnic networks in different contexts. Our analysis will be focused, in particular, on the ethnic Chinese networks which have progressively strengthened and extended their influence on global markets. The aim of this paper is to investigate the role of ethnic networks in international trade by estimating the increase in bilateral trade attributable to ethnic Chinese networks, suggesting that their role in overcoming informal trade barriers is economically important.

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