The trade creation effect of immigrants: evidence from the remarkable case of Spain

Peri, Giovanni; Silvente, Francisco Requena

doi:10.1111/j.1540-5982.2010.01620.x

Cited by 144 publications

(79 citation statements)

References 37 publications

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“…This paper's results suggest that migrants can indeed reap rewards for using foreign language and migrant-specific unobserved skills can unlock productive potential once migrants work in foreign-language-intensive service occupations. Peri and Requena-Silvente (2010) as well as Mundra (2012) find that migrants' tradecreating effects vary by occupation, which is my results support. Crucially, the evidence in this paper furthermore suggests that the role of foreign language skills and English in particular is not confined to migrants.…”

Section: Panel Data Analysissupporting

confidence: 76%

The returns to occupational foreign language use: Evidence from Germany

Stöhr

2015

Labour Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The Returns to Occupational Foreign Language Use: Evidence from Germany Terms of use: Documents in Tobias Stöhr Kiel Institute for the World EconomyAbstract This paper analyses the wage premia associated with workers' occupational use of foreign languages in Germany. After eliminating timeinvariant unobserved heterogeneity and other confounding factors, sizable returns of about 10 percent to applying fluent English skills are found. Returns to occupational use of other foreign languages are, if anything, restricted to a few specialized occupations. Compared to non-migrants, immigrants receive more than twice the return for using English. Returns depend crucially on speaking German well, thus excluding many first generation migrants and are found to occur particularly in service occupations that involve international factor flows. In such occupations it is likely that migrants can apply complementary skills such as international experience that their non-migrant counterparts lack. As immigrants do not earn significant wage premia for applying their native language on the job in addition to those for English, their trade-fostering potential seems to be unlocked by complementary fluency in the two business languages German and English.

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Section: Panel Data Analysissupporting

confidence: 76%

The returns to occupational foreign language use: Evidence from Germany

Stöhr

2015

Labour Economics

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“…In line with recent contributions (Wagner et al (2002); Dunlevy (2006); Bandyopadhyay et al (2008); Briant et al (2009) ;Peri and Requena-Silvente (2010); Herander and Saavedra (2005), see Section 2 on that) we test the relationship between trade and immigration over fine spatial units.…”

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confidence: 95%

On the pro-trade effects of immigrants

2014

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In this paper we investigate the causal effect of immigration on trade flows using Italian panel data at the province level. We exploit the exceptional characteristics of the Italian data (the fine geographical disaggregation, the very high number of countries of origin of immigrants, the high heterogeneity of social and economic characteristics of Italian provinces, and the absence of cultural or historical ties) and an empirical strategy based on the comparison of estimates at the NUTS-2 and NUTS-3 geographical level, on the use of a wide set of fixed effects, and on instrument based on immigrants' enclaves. The results are that immigrants have a significant positive effect on both exports and imports, much larger for the latter. The pro-trade effects of immigrants tend to decline in space, and even turn negative when large ethnic communities are located too far away from a specific province (via a trade-diversion effect). Finally, we give evidence of a substantial heterogeneity in the effects of immigrants: the impact on trade tends to be larger for immigrants coming from low-income countries, for earlier waves of immigrants and for the less advanced provinces of Southern Italy. AbstractIn this paper we investigate the causal effect of immigration on trade flows using Italian panel data at the province level. We exploit the exceptional characteristics of the Italian data (the fine geographical disaggregation, the very high number of countries of origin of immigrants, the high heterogeneity of social and economic characteristics of Italian provinces, and the absence of cultural or historical ties) and an empirical strategy based on the comparison of estimates at the NUTS-2 and NUTS-3 geographical level, on the use of a wide set of fixed effects, and on instrument based on immigrants' enclaves. The results are that immigrants have a significant positive effect on both exports and imports, much larger for the latter. The pro-trade effects of immigrants tend to decline in space, and even turn negative when large ethnic communities are located too far away from a specific province (via a trade-diversion effect). Finally, we give evidence of a substantial heterogeneity in the effects of immigrants: the impact on trade tends to be larger for immigrants coming from low-income countries, for earlier waves of immigrants and for the less advanced provinces of Southern Italy. JEL Classification

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“…Plants with employees from various countries might find it easier to enter foreign markets and to build up distribution networks in those countries (see Rauch andTrinidade 2002, Peri andRequena-Silvente 2010). This is because the foreign employees may possess specific knowledge about the export destinations that are supposedly important for the success in these markets, and ultimately for the productivity of the plant.…”

Section: E) Exporters and Foreign-owned Firmsmentioning

confidence: 99%