Immigrant’s Characteristics and its different effects on bilateral trade
AbstractThis paper tests for the impact of immigration on bilateral trade using Spanish data from 1995 to 2003. It also explores some possible mechanisms through which the stock of immigrants in a country can contribute to its trade. It uses a gravity equation for trade augmented with an immigrants stock variable and a set of control variables. The immigrants variable enters the estimated equation in different ways depending on immigrant relevant characteristics. Results show that there is a positive link between immigration and both exports and imports. We find evidence for the trade transaction cost channel but not for the preference one. We find evidence that support that the mechanisms behind this link are the information effect - additional information about product and about social and political institutions brought by immigrants - and the social o ethnic network effect - since immigrants with a medium level of education and those who are related to business activities are the one who have a positive effect on bilateral trade.
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Bibliographic InfoPaper provided by Asociación Española de Economía y Finanzas Internacionales in its series Working Papers with number 05-09.
Length: 35 pages
Date of creation: Nov 2005
Date of revision:
International Trade; Migration;
Other versions of this item:
- José Vicente Blanes-Cristóbal, . "Immigrant's Characteristics and its different effects on bilateral trade," Working Papers on International Economics and Finance 05-09, FEDEA.
- F10 - International Economics - - Trade - - - General
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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- José V. Blanes & Juliette Milgram Baleix, 2006. "The Free Trade Agreement Morocco-EU: a simulation of the impact on EU exports," ThE Papers 06/09, Department of Economic Theory and Economic History of the University of Granada..
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