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Migration's Contribution to Trade: State-Level Evidence on the Importance of Destination Geographic Proximity

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  • Michael Gove

Abstract

I empirically analyze the importance of differing levels of geographic proximity, providing the first results of the migrant-trade nexus at the state level for both places of destination and origin. Relying on a unique dataset allowing the mapping of Mexican-born migrants' US states of residence to Mexican states of origin, I ensure a precise measurement of migrant networks and other potential determinants of international trade, including the distance and mass variables fundamental to any gravity model. Furthermore, I unmask distinct levels of geographic proximity that a single migration estimate disguises, estimating statistically significant elasticities of exports to in-state, and neighboring-state migration. These figures are not only qualitatitvely but also quantitatively important, corresponding to partial contributions of $1984 (in-state) and $538 (neighboring-state) to annual exports between respective US and Mexican states associated with each average additional migrant.

Suggested Citation

  • Michael Gove, 2017. "Migration's Contribution to Trade: State-Level Evidence on the Importance of Destination Geographic Proximity," International Economic Journal, Taylor & Francis Journals, vol. 31(2), pages 224-244, April.
    • Handle: RePEc:taf:intecj:v:31:y:2017:i:2:p:224-244
    DOI: 10.1080/10168737.2017.1316296
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    Cited by:

    1. Michael Gove, 2018. "Migration as Development: Household Survey Evidence on Migrants’ Wage Gains," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 137(3), pages 1033-1060, June.
    2. Oleg Firsin, 2022. "Which Immigrants Promote Trade with Third Party Countries? On the Role of Geographic and Linguistic Proximity," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 48(1), pages 1-44, January.

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