International trade and social connectedness

A-Tier
Journal: Journal of International Economics
Year: 2021
Volume: 129
Issue: C

Authors (6)

Bailey, Michael (not in RePEc) Gupta, Abhinav (not in RePEc) Hillenbrand, Sebastian (not in RePEc) Kuchler, Theresa (not in RePEc) Richmond, Robert (not in RePEc) Stroebel, Johannes (National Bureau of Economic Re...)

Score contribution per author:

0.670 = (α=2.01 / 6 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We use de-identified data from Facebook to construct a new and publicly available measure of the pairwise social connectedness between 170 countries and 332 European regions. We find that two countries trade more when they are more socially connected, especially for goods where information frictions may be large. The social connections that predict trade in specific products are those between the regions where the product is produced in the exporting country and the regions where it is used in the importing country. Once we control for social connectedness, the estimated effects of geographic distance and country borders on trade decline substantially.

Technical Details

RePEc Handle
repec:eee:inecon:v:129:y:2021:i:c:s0022199620301331
Journal Field
International
Author Count
6
Added to Database
2026-01-29