Heterogeneous effect of ethnic networks on international trade of Thailand: The role of family ties and ethnic diversity

► This paper attempts to untangle the heterogeneous effect of ethnic networks on international trade using trade data of Thailand. ► The ethnic networks exert positive influence on trade, and the magnitude of this effect changes across different ethnicities. ► We find that ethnicities with stronger family ties have a cultural preference of trading within their own ethnicities. ► Ethnic diversity weakens positive effect of ethnic networks on trade, implying informational value of ethnic structure in promoting trade. ► We add to the literature new evidence of the enduring influence of social and cultural attributes on economic activities.