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Do migrants affect the local product mix? An analysis of the effects and underlying mechanisms
[Migration, knowledge diffusion and the comparative advantage of nations]

Author

Listed:
  • Elizabeth J Casabianca
  • Alessia Lo Turco
  • Daniela Maggioni

Abstract

We study the impact of immigration on the product mix of the receiving economy by combining information on the local presence of immigrants with a highly detailed definition of the set of goods produced by Italian provinces. For the period 2002–2011, we find that an increase in the share of migrants shifts the manufacturing output composition of host provinces in favour of less capital intensive products. This evidence is based on an IV strategy resting on the settlement of immigrants in the pre-sample period and is robust to several sensitivity checks. We shed light on two mechanisms potentially driving our result. On the one hand, we show that immigration reduces provinces’ dependence on imports of low capital intensity intermediate goods. On the other hand, immigration fosters relatively more the creation of new firms in local low capital intensity industries.

Suggested Citation

  • Elizabeth J Casabianca & Alessia Lo Turco & Daniela Maggioni, 2022. "Do migrants affect the local product mix? An analysis of the effects and underlying mechanisms [Migration, knowledge diffusion and the comparative advantage of nations]," Journal of Economic Geography, Oxford University Press, vol. 22(4), pages 755-777.
    • Handle: RePEc:oup:jecgeo:v:22:y:2022:i:4:p:755-777.
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    File URL: http://hdl.handle.net/10.1093/jeg/lbab017
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    More about this item

    Keywords

    Immigration; local production structure; capital intensity;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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