20 Years of Arnoldshain Seminar
“20 Years of Challenges for Integration, Globalization, and Development”
September 14 – 18, 2015
Frankfurt and Arnoldshain / Taunus

Recalde, Maria Luisa    
AbstracttitleThe education networks of Latin America. Effects on bilateral trade during and after the cold war.
Coco-authored with Marina Murat, Pedro Degiovanni
ShortabstractUniversity students tend to build friendship and social ties that may last for a life time and evolve, in some cases, into business links. Latin American students have conspicuously started to move abroad during the sixties and seventies of the last century. With the end of the cold war, outgoing numbers grew rapidly. Do these movements influence the bilateral trade flows between students‟ countries of origin and destination? And, if they do, is this influence constant through time? Is it related to the types of goods traded, or to specific characteristics of sending and receiving countries? This paper tests the effects of students‟ movements from eleven Latin-American countries into nine OECD economies on bilateral trade flows during years 1971 to 2012. We use several cofactors, different econometric specifications and controls for endogeneity. Our main results are that education networks have positive and significant effects on bilateral exports and imports. In particular, the impact of students on trade is higher during the cold war period than afterwards, when the proportion of differentiated goods traded increases, but the political, cultural and institutional similarities between origin and destination countries improve significantly. We find the impact of education networks to be robust to different specifications and regressors. Governments should implement specific policies to trigger international student movements.
PresenterMarina Murat