Ethnic Diversity and Firms' Export Behavior

Pierpaolo Parrotta, Dario Pozzoli and Davide Sala
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Davide Sala: Universität Passau [Passau], Aarhus University [Aarhus]

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Abstract: Media are reporting of companies that are increasing the diversity of their workforce to expand their business internationally. This paper investigates whether these examples constitute pieces of evidence that diversity promotes firms' internationalization. Indeed, diverse companies are like a cosmopolitan world in small scale, in which their employees learn to relate to other cultures. This improves firms' relational capital and ability to market products internationally. To address endogeneity issues, we rely on several empirical strategies, one of which is centered on the well established "shift share" method. Our results are robust across all empirical models, confirming the hypothesis that ethnic diversity favors firms' engagement on international markets.

Keywords: Ethnic diversity; Shift share; Instrumental variable; Export (search for similar items in EconPapers)
Date: 2016
Note: View the original document on HAL open archive server: https://hal.science/hal-01512787
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Citations: View citations in EconPapers (9)

Published in European Economic Review, 2016, 89, pp.248-263. ⟨10.1016/j.euroecorev.2016.08.001⟩

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Related works:
Journal Article: Ethnic diversity and firms' export behavior (2016)
Working Paper: Ethnic Diversity and Firms' Export Behavior (2014)
Working Paper: Ethnic Diversity and Firms' Export Behavior (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01512787

DOI: 10.1016/j.euroecorev.2016.08.001

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