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Immigration, Trade and Product Differentiation

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  • R White

Abstract

Immigrant-trade links are examined with an emphasis placed on variation across product types and home country income classifications. Data for the US and 70 trading partners spanning the 1980-1997 period are employed. We find the immigrant-trade relationship varies based on degree of product differentiation and by home country per-capita income. In response to a hypothetical 10 percent increase in the immigrant stock variable, US imports of differentiated goods from high income countries increase by approximately 2 percent. A like increase in the immigrant stock from low income countries increases US differentiated goods imports by 4.25 percent, while exports of homogenous goods increase by 2.5 to 4.3 percent. Imports of homogenous goods from high income nations and exports of all product types to these nations appear unaffected by immigrant stock levels.

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File URL: http://www.economicissues.org.uk/Files/109White.pdf
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Bibliographic Info

Article provided by Economic Issues in its journal Economic Issues.

Volume (Year): 14 (2009)
Issue (Month): 1 (March)
Pages: 43-64

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Handle: RePEc:eis:articl:109white

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Web page: http://www.economicissues.org.uk
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  1. Combes, Pierre-Philippe & Lafourcade, Miren & Mayer, Thierry, 2005. "The trade-creating effects of business and social networks: evidence from France," Journal of International Economics, Elsevier, vol. 66(1), pages 1-29, May.
  2. John Bryant & Murat Genc & David Law, 2004. "Trade and Migration to New Zealand," Treasury Working Paper Series 04/18, New Zealand Treasury.
  3. Ghosh, Sucharita & Yamarik, Steven, 2004. "Does trade creation measure up? A reexamination of the effects of regional trading arrangements," Economics Letters, Elsevier, vol. 82(2), pages 213-219, February.
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Cited by:
  1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2011. "The impact of immigration on international trade: a meta-analysis," Norface Discussion Paper Series 2011020, Norface Research Programme on Migration, Department of Economics, University College London.
  2. Horácio Faustino & Isabel Proença, 2011. "Effects of Immigration on Intra-Industry Trade: A logit analysis," Working Papers Department of Economics 2011/19, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  3. Nuno Carlos Leitão, 2013. "The Impact of Immigration on Portuguese Intra-Industry Trade," Working Papers 2013.20, Fondazione Eni Enrico Mattei.
  4. Faqin Lin, 2011. "The pro-trade impacts of immigrants: a meta-analysis of network effects," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 4(1), pages 17-27, February.

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