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Immigration and trade: the case study of Veneto region in Italy

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  • Fiorentini, Riccardo
  • Verashchagina, Alina

Abstract

This paper investigates the relation between immigration and trade by focusing on Veneto region in Italy. The reference period is 2008-2015, interfering with the economic crisis, thus the results obtained can be time specific. The presence of immigrants in Veneto was constantly on the rise, also during the crisis, although at a slower pace compared to pre-crisis years. The question is which role could this play in ascertaining the stability, if not expansion, of trade relations between the region and the countries of immigrants' origin. The estimates of gravity model suggest a non-linear relationship between the number of immigrants and total exports from (imports to) the host-province to (from) the country of origin. The type of this relation moreover differs by sector of origin of trade. The effect on imports is mainly concentrated in manufacturing, whereas that on exports is more evenly distributed among several sectors. In particular, agriculture, mining, manufacturing, water supply and wastes managements are the ones which react positively by exporting more in response to increase in the number of immigrants. This could mean that further inflow of immigrants can potentially induce shifts in the structure of local economy of Veneto region which is highly dependent on international trade.

Suggested Citation

  • Fiorentini, Riccardo & Verashchagina, Alina, 2017. "Immigration and trade: the case study of Veneto region in Italy," 2017 Sixth AIEAA Conference, June 15-16, Piacenza, Italy 261261, Italian Association of Agricultural and Applied Economics (AIEAA).
    • Handle: RePEc:ags:aiea17:261261
    DOI: 10.22004/ag.econ.261261
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    1. Koffi Dumor & Li Yao, 2019. "Estimating China’s Trade with Its Partner Countries within the Belt and Road Initiative Using Neural Network Analysis," Sustainability, MDPI, vol. 11(5), pages 1-22, March.

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    More about this item

    Keywords

    International Development; International Relations/Trade;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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