2012
DOI: 10.1111/j.1467-9701.2011.01429.x
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Migration and Trade

Abstract: Theoretical and empirical research in economics suggests that bilateral migration triggers bilateral trade through a number of channels. This paper assesses the functional form of the impact of migration on trade flows in a quasi‐experimental setting. We provide evidence that the relationship is not log‐linear. In particular, at small levels of immigration (stocks) the elasticity of trade to migration is quite high, and it declines to zero at about 4,000 immigrants. If immigration stocks exceed such a level, t… Show more

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Cited by 97 publications
(73 citation statements)
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References 77 publications
(89 reference statements)
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“…There is, however, no conclusive evidence that remittances unambiguously promote macroeconomic growth (Yang 2011). Others have argued that out-migration does not only lead to higher levels of trade (Egger et al 2012;Fairlie and Lofstrom 2013;Rauch and Trindade 2002) and FDI (Kugler and Rapoport 2011) to developing countries but also contributes to development through "social remittances." "Social remittances are the ideas, behaviours, identities, and social capital that flow from receiving-to sending-country communities" (Levitt 1998: 927).…”
Section: Does Migration Matter For Development?mentioning
confidence: 99%
“…There is, however, no conclusive evidence that remittances unambiguously promote macroeconomic growth (Yang 2011). Others have argued that out-migration does not only lead to higher levels of trade (Egger et al 2012;Fairlie and Lofstrom 2013;Rauch and Trindade 2002) and FDI (Kugler and Rapoport 2011) to developing countries but also contributes to development through "social remittances." "Social remittances are the ideas, behaviours, identities, and social capital that flow from receiving-to sending-country communities" (Levitt 1998: 927).…”
Section: Does Migration Matter For Development?mentioning
confidence: 99%
“…Based on these empirical findings and on prior theoretical studies that suggest migration triggers a rise in bilateral trade flows through a number of channels, Egger et al (2011) assesses the functional form of the impact of migration on trade flows in a quasi-experimental setting and provides evidence that suggests the relationship between migration and trade is not log-linear. In particular, the authors report that at low immigrant stock levels the elasticity of trade to migration is quite high but that it declines to zero at about 4,000 immigrants.…”
mentioning
confidence: 97%
“…Beside the obvious impact on country demographic composition, living conditions, cultural and social integration, national security, and socio-economic globalization, migration has strong distributional effects due to internationalremittance flows [12], which can contribute to poverty reduction and economic growth in origin countries [13]. Furthermore, it may unevenly affect labor-market structure, wages and development in destination countries through brain-drain [14,15], and bilateral trade via a decrease in transaction costs and the emergence of new consumption-preference patterns [16,17].…”
Section: Lem Lem Working Paper Seriesmentioning
confidence: 99%