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The pro-trade effect of the brain drain: Sorting out confounding factors

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  • Felbermayr, Gabriel J.
  • Jung, Benjamin

Abstract

We sort out confounding factors in the empirical link between bilateral migration and trade. Using newly available panel data on developing countries' diaspora to rich OECD nations in a theory-grounded gravity model, we uncover a robust, causal pro-trade effect. Moreover, we do not find evidence in favor of strong differences across education groups.

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File URL: http://www.sciencedirect.com/science/article/B6V84-4W4CWHG-1/2/84ab7941bf8fc7af6f2b5813e488327f
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Bibliographic Info

Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 104 (2009)
Issue (Month): 2 (August)
Pages: 72-75

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Handle: RePEc:eee:ecolet:v:104:y:2009:i:2:p:72-75

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Web page: http://www.elsevier.com/locate/ecolet

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Keywords: Gravity model International trade International migration;

References

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  1. James A. Dunlevy, 2006. "The Influence of Corruption and Language on the Protrade Effect of Immigrants: Evidence from the American States," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 182-186, February.
  2. Bandyopadhyay, Subhayu & Coughlin, Cletus C. & Wall, Howard J., 2006. "Ethnic Networks and U.S. Exports," IZA Discussion Papers 1998, Institute for the Study of Labor (IZA).
  3. Richard Baldwin & Daria Taglioni, 2006. "Gravity for Dummies and Dummies for Gravity Equations," NBER Working Papers 12516, National Bureau of Economic Research, Inc.
  4. Michel Beine & Frédéric Docquier & Hillel Rapoport, . "Brain drain and human capital formation in developing countries: winners and losers?," ULB Institutional Repository 2013/10415, ULB -- Universite Libre de Bruxelles.
  5. Frédéric Docquier & Elisabetta Lodigiani, 2010. "Skilled Migration and Business Networks," Open Economies Review, Springer, vol. 21(4), pages 565-588, September.
  6. Wagner, Don & Head, Keith & Ries, John, 2002. "Immigration and the Trade of Provinces," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 507-25, December.
  7. Baltagi, Badi H. & Egger, Peter & Pfaffermayr, Michael, 2003. "A generalized design for bilateral trade flow models," Economics Letters, Elsevier, vol. 80(3), pages 391-397, September.
  8. Scott L. Baier & Jeffrey H. Bergstrand, 2005. "Do free trade agreements actually increase members’ international trade?," Working Paper 2005-03, Federal Reserve Bank of Atlanta.
  9. Kugler, Maurice & Rapoport, Hillel, 2007. "International labor and capital flows: Complements or substitutes?," Economics Letters, Elsevier, vol. 94(2), pages 155-162, February.
  10. Robert E.B. Lucas, 2006. "Migration and Economic Development in Africa: A Review of Evidence," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 15(2), pages 337-395, December.
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Citations

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Cited by:
  1. Mariya Aleksynska & Giovanni Peri, 2011. "Isolating the Network Effect of Immigrants on Trade," Working Papers 2011-26, CEPII research center.
  2. Hiller, Sanne, 2011. "The export promoting effect of emigration: Evidence from Denmark," Center for European, Governance and Economic Development Research Discussion Papers 126, University of Goettingen, Department of Economics.
  3. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect?," IZA Discussion Papers 6975, Institute for the Study of Labor (IZA).
  4. Giulia BETTIN & Alessia LO TURCO, 2009. "A Cross Country View On South-North Migration And Trade," Working Papers 331, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
  5. Frédéric DOCQUIER & Hillel RAPOPORT, 2011. "Globalization, brain drain and development," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011009, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
  6. Gabriel J. Felbermayr & Benjamin Jung & Farid Toubal, 2009. "Ethnic Networks, Information, and International Trade: Revisiting the Evidence," Working Papers 2009-30, CEPII research center.
  7. Michael Good, 2012. "How Localized is the Pro-trade Effect of Immigration? Evidence from Mexico and the United States," Working Papers 1203, Florida International University, Department of Economics.
  8. Hélène Ehrhart & Maëlan Le Goff & Emmanuel Rocher & Raju Jan Singh, 2012. "Does Migration Foster Exports? An African Perspective," Working Papers 2012-38, CEPII research center.

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