Network migration: do neighbouring regions matter?

This paper analyses the role of the spatial structure of migrant networks in the location decision of migrants to the European Union at the regional level. Using a random parameters logit specification, a significant positive effect of migrant networks in neighbouring regions on migrants' location decisions is found. Although this spatial spillover effect is smaller than the effect of networks in the host regions, omitting to control for this spatial dependence results in a 40% overestimation of the effect of regional migrant networks on the location decision of newly arriving migrants