The trade-enhancing effect of immigration networks: New evidence on the role of geographic proximity

Artal-Tur, Andrés; Pallardó-López, Vicente; Silvente, Francisco Requena

doi:10.1016/j.econlet.2012.05.046

Cited by 25 publications

(16 citation statements)

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“…For example, the impact of immigration is reduced by 88%, 70%, and 42% for Italy, Portugal, and Spain respectively, when accounting for unobserved characteristics between countries and provinces that do not change over time and unobserved country-specific factors that change over time (row 1) [6]. The change is even more drastic-with the immigrant elasticity of trade becoming negative-when unobservable historical, cultural, and political ties are accounted for [3].…”

Section: Bilateral Tiesmentioning

confidence: 85%

“…This suggests that there may be large biases in cross-sectional studies, simply because it is not possible to account for such unobservable factors when the trading partners are observed only once in a certain time period. Source: Data compiled from [3], [5], [6], [7], and materials listed in the additional references at: http://wol.iza.org/articles/impact-of-migration-on-trade. …”

Section: Bilateral Tiesmentioning

confidence: 99%

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The impact of migration on trade

Genç¹

2014

izawol

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ProsThere is a causal positive relationship between migration and international trade. A 10% increase in the stock of immigrants can boost trade by an estimated 1.5% on average. Almost no studies have found a negative impact. Rich data with better and more immigration data than past studies yield similar results. autHOr'S MaIn MeSSaGeImmigration increases trade. The size of the impact depends on the type of sending countries, the type of commodities, the type of immigrants, and the size of the existing migrant population. So, it makes sense for governments to follow more liberal migration policies. Promoting the pro-trade impact of immigrants in a wider public domain could make citizens more tolerant of more liberal immigration policies. ConsSome of the variation in the estimated effect of increased immigration on trade is due to the econometric methods used. Most studies do not allow the estimated effect of immigration on trade to differ for different immigrant stocks. Results from cross-sectional studies need to be interpreted with caution as they may overestimate the impact of immigrants. the impact of migration on tradeImmigrants are good for trade

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Section: Bilateral Tiesmentioning

confidence: 85%

Section: Bilateral Tiesmentioning

confidence: 99%

The impact of migration on trade

Genç¹

2014

izawol

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“…This means that the number of trade relationships of a given province depends only on the fraction of immigrants within the province itself. While there is general consensus on this (Herander and Saavedra, 2005;, the empirical consistency of such hypothesis for the Spanish test case is shown in Artal-Tur et al (2012), where the authors prove that the proximity (meant as geographical closeness) is key for the diffusion of the social capital and therefore for the expansion in the number of trade relationships abroad.…”

Section: Data Analysis On Aggregate Exports and Migrantsmentioning

confidence: 99%

“…In fact, the bulk of the migration-trade relation is known to be an in-province phenomenon: exports from a province to a given foreign country do not receive significant stimuli by immigrants coming from that country but living in a different province (Artal-Tur et al, 2012). Therefore, we can fix the resolution at the provincial level and treat each province as a different sample over which we will average.…”

Section: The Modelmentioning

confidence: 99%

“…Spain has been the subject of previous studies examining the migrationtrade link because of its peculiarities compared with other OECD countries (see, for example, Peri and Requena-Silvente, 2010;Artal-Tur et al, 2012;Serrano-Domingo and Requena-Silvente, 2013). In fact, Spain had one of the lowest immigration rates among OECD countries before 2000 and received massive inflows of migrants in a relatively short period of time (2000)(2001)(2002)(2003)(2004)(2005)(2006)(2007)(2008).…”

Section: Introductionmentioning

confidence: 99%

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Assessing the role of migration as trade-facilitator using the statistical mechanics of cooperative systems

et al. 2016

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Interactions between natives and foreign-born individuals may help to stimulate the development and the diversification of bilateral trade relationships. In fact, migrants act as trade facilitators reducing transaction costs in export activities and, consequently, more local firms are able to establish new trade relationships abroad. The pro-trade effect of migration is well evidenced in several works where the shape of the trade-migration relationship has been examined empirically; however, they all lack an analytical model that enables them to predict the expected non-linear relationship between migration and trade. Here, using statistical mechanics tools we develop a simple model that demonstrates that there is a positive non-linear relationship between the extensive margin of trade and the proportion of migrants in the total population. Data on Spanish trade and migration provide support for the predictions made by the theoretical model. The model also suggests the need of a critical mass of migrants before their interactions with the natives have any effective impact on trade. The threshold is sensitive to the nationality of the migrants, suggesting that cultural differences between natives and migrants may affect the number of migrants needed to generate a positive impact on trade. Furthermore, we examine the possible relationship between the share of migrants in the total population and the extent of diversification of the portfolio of exported goods, finding evidence of a strong positive correlation. Our approach can be used to examine other related issues such as the impact of formal or informal firm networks on trade.

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The Impact of Emigration on Source Countries

Ghosh

Weinstein

2020

The Economic Geography of Cross-Border Migration

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The trade-enhancing effect of immigration networks: New evidence on the role of geographic proximity

Cited by 25 publications

References 10 publications

The impact of migration on trade

The impact of migration on trade

Assessing the role of migration as trade-facilitator using the statistical mechanics of cooperative systems

The Impact of Emigration on Source Countries

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