Felbermayr, Gabriel J; Jung, Benjamin; Toubal, Farid - Institut für Volkswirtschaftslehre, Fakultät … - 2009
Influential empirical work by Rauch and Trindade (REStat, 2002) finds that Chinese ethnic networks of the magnitude observed in Southeast Asia increase bilateral trade by at least 60%. We argue that this estimate is upward biased due to omitted variable bias. Moreover, it is partly related to a...