Patterns of Trade in Ethnic Enclaves: A Study of Arab and Hispanic Small Businesses

Abstract

This study examines the nature of intra-enclave trade for two ethnic enclaves, Hispanics and Arabs, within a U.S. metropolitan area. Based upon a sample of forty-two small ethnic businesses, a modified enclave input-output table is developed for purchases of materials, services, and labor inputs and sales of outputs. Analysis suggests that ethnic firms tend to rely more upon the ethnic enclave for labor inputs than for other resources. In addition, the study indicates that start-up firms rely more upon intra-enclave economic exchange than more mature ethnic business.