Ethnic Diversity and Firms' Export Behavior

Abstract

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New evidence on the link between ethnic fractionalization and economic freedom

“…Considering instead international trade, Mohr and Shoobridge (2011) hypothesize that firms with ethnically diversified workforce are more able to trade internationally, as they have more experience with different tastes and preferences. Empirical analyses seem to provide ground for this hypothesis (Parrotta et al, 2016).…”

Immigrant entrepreneurs, diasporas, and exports

“…The controls MNEs and are included for the same reason. In light of the extensive literature on the productivity‐ and export‐enhancing effects of labor force diversity (see, among others, Bombardini, Gallipoli, & Pupato, ; Parrotta, Pozzoli & Sala, ), is included in the regression to assess whether the gains in export performance are mainly to be attributed to the initial level of population diversity rather than to the sizes of the immigrant and immigrant entrepreneur populations . Since the fixed effect that represents our dependent variables has been estimated from a regression, observations are weighted by the inverse of the standard errors of the using weighted least square (WLS) estimates .…”

Immigrants, occupations and firm export performance

“…Using data on Danish manufacturing firms, Parrotta et al. () investigate the causal effect of an increase in ethnic diversity on export outcomes at both margins. The authors measure diversity using differences in spoken languages across workers.…”

“…We revisit two strands of literature. On the one hand, empirical evidence shows that the export‐enhancing effect of immigrants is related to the information they convey on foreign countries (Andrews, Schank, & Upward, ; Hatzigeorgiou & Lodefalk, ; Parrotta, Pozzoli, & Sala, ; Hiller, ; Peri & Requena‐Silvente, ). Existing firm‐level studies show that immigrants possess valuable knowledge on foreign markets that decreases variable and fixed costs faced by exporters.…”