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Immigration Wave Effects on Canada's Trade Flows

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  • Jamie Partridge
  • Hartley Furtan
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    Abstract

    We utilize an enhanced gravity model to estimate the effect of lagged immigration waves on Canadian imports and exports by province. Empirically, this model was tested using Canadian data on import and export flows to the top 40 countries of origin for Canadian immigrants based upon the composition of the most recent immigrant wave. The results are consistent with previous studies, where immigrants increased both import and export trade flows. By adding the provincial immigrant wave variable, it was also found that new immigrants affect imports almost immediately, whereas for exports, the immigrant effect is not significant for at least five years and may take as long as 20 years to reach full impact.

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    File URL: http://dx.doi.org/10.3138/cpp.34.2.193
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    Bibliographic Info

    Article provided by University of Toronto Press in its journal Canadian Public Policy.

    Volume (Year): 34 (2008)
    Issue (Month): 2 (June)
    Pages: 193-214

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    Handle: RePEc:cpp:issued:v:34:y:2008:i:2:p:193-214

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    1. Melitz, Jacques, 2007. "North, South and distance in the gravity model," European Economic Review, Elsevier, Elsevier, vol. 51(4), pages 971-991, May.
    2. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
    3. James E. Anderson & Eric van Wincoop, 2001. "Gravity with Gravitas: A Solution to the Border Puzzle," NBER Working Papers 8079, National Bureau of Economic Research, Inc.
    4. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 39(4), pages 1177-1203, December.
    5. Picot, Garnett & Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
    6. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, The MIT Press, edition 5, volume 1, number 026261183x, December.
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    Cited by:
    1. Genc, Murat & Gheasi, Masood & Nijkamp, Peter & Poot, Jacques, 2011. "The Impact of Immigration on International Trade: A Meta-Analysis," IZA Discussion Papers 6145, Institute for the Study of Labor (IZA).
    2. Grubel, Herbert & Grady, Patrick, 2012. "Fiscal transfers to immigrants in Canada: responding to critics and a revised estimate," MPRA Paper 37406, University Library of Munich, Germany, revised 06 Mar 2012.

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