The Influence Of Ethic Chinese Network On China’s International Trade

The report of the world population2011released by the United Nations shows that the world’s population has exceeded7billion. According to the previous economic data statistics, the world population in the19th century was only1billion, however, until the end of the20th century, the world population has reached6billion. The world population distribution is extreme unbalance following the explosive growth of population. This imbalance will inevitably lead to cross-regional migrations of people. The United Nations social affairs released a report of International migration in2009which shows International migration will reach more than213million, accounting for3.1%of the global population in2010.With globalization of economy, the International migration not only means the increase of the number of the labor force, but its diverse culture and demand is influences the whole world. According to the Word economic and social survey2004-international migration published by the United Nations, International migration can promote the global economy and the vigor, and orderly International population movement can be regarded as the communication media of the global technology and knowledge, and can promote International economic vitality and efficiency, which make the economic and trade relations between countries closer. According to reviewing the previous scholars study, this paper found that there are two different points of view about the influence of International immigrants to the international trade.After reviewing the previous scholars’study, this paper found that there were two different views of the influence:the substitute relationship of the H-O model and the complementary relationship of the modified H-O models. But, in recent years, the research conclusion almost reached consensus that the relationship of immigration and international trade was complementary. This view was that immigrants were not only as labor elements to influence a country’s international trade. Immigration influence international trade mainly through the following two ways:one was the special preference to the products of immigrants’motherland, the other was that the immigration network could reduce the transaction costs between immigration country and immigrants’motherland. For the first kind of influence mechanism, the scholars’viewpoint was:Many immigrants had’local bias’, which made consumers have higher value judgment of native products. On the one hand, consumers had become a habit of hobby and taste after long-term living in a certain region, so that when they moved to new areas, they would go on the past consumption habits in a long period of time. On the other hand, there only may be the emotional factors, especially the patriotism and chauvinism. So a large number of immigrants chose the products which were from home country. The explanation of transaction cost mechanism was that immigration, in a certain extent, solved the problem of the asymmetry of information and reduced the cost of searching information in international trade. And also the special language advantage of immigration can broke the international trade barriers. And finally, through long-term business cooperation immigration network can form a natural contract which was beyond the law. This contract would be a strong deterrent effect on opportunism behaviors which had breached the contract.Although the influence of international immigration to international trade had been verified and recognized by more and more scholars, these studies mostly focused on the influence of recipient countries ignoring the study of immigrants’ home country. This paper, by using the bilateral trade data of China and23sample countries from1994to2010, used the measurement method of gravity model and panel data to carry on a empirical test for China’s overseas immigrants promoted China’s international trade effect. And this paper also respectively analyzed the different effect of China’s overseas immigrants on China’s import and export. The result showed that there was a obvious promoted role for overseas immigration network to China’s export trade, and there was a insignificant role in China’s import trade.