CEPII, Recherche et Expertise sur l'economie mondiale
Exporting Creative and Cultural Products: Birthplace Diversity Matters!

Gianluca Orefice
Gianluca Santoni

 Highlights :
  • This paper analyses the role of diversity in the birthplaces of foreign-born individuals in trade in creative and cultural goods.
  • A 10% increase in the diversity of immigrants (or a reduction in their concentration) increases creative goods exports by 4%.
  • The biggest contribution to the "creative" process in the creative and cultural goods industry is generated by birthplace diversity of tertiary educated immigrants.

 Abstract :
This paper analyses the effect of birthplace diversity on exports of creative and cultural goods, for 19 OECD countries, over the period 1990-2010. By matching UNESCO's creative and cultural exports classification to trade and migration data, we find a strong positive effect of birthplace diversity on the export of creative products. In particular, a 10% increase in the birthplace diversity index implies a 4% increase in creative goods export. These results are robust across several specifications and shed light on a potential new channel through which migrants can contribute to the host country's export performance. It is interesting to note that only diversity of secondary and tertiary educated immigrants contributes to an increase in exports of creative and cultural goods. An instrumental variables approach addresses the potential endogeneity problems and confirms our results.

 Keywords : Creative Products | International Trade | Birthplace Diversity | Migration

 JEL : F14, F16, F22
CEPII Working Paper
N°2017-17, September 2017

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