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Product Complexity, Quality of Institutions and the Pro-Trade Effect of Immigrants

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Author Info
Briant, Anthony
Combes, Pierre-Philippe
Lafourcade, Miren

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Abstract

The paper assesses the trade-creating impact of foreign-born residents on the international imports and exports of the French regions where they are settled. The pro-trade effect of immigrants is investigated along two intertwined dimensions: the complexity of traded goods and the quality of institutions in partner countries. The trade-enhancing impact of immigrants is, on average,more salient when they come froma country with weak institutions. However, this positive impact is especially large on the imports of simple products. When we turn to complex goods, for which the information channel conveyed by immigrants is the most valuable, immigration enhances imports regardless of the quality of institutions in the partner country. Regarding exports, immigrants substitute for weak institutions on both simple and complex goods.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 7192.

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Date of creation: Mar 2009
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Handle: RePEc:cpr:ceprdp:7192

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Related research
Keywords: gravity; immigration; product complexity; quality of institutions; trade;

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Find related papers by JEL classification:
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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  24. Subhayu Bandyopadhyay & Cletus C. Coughlin & Howard J. Wall, 2008. "Ethnic Networks and US Exports," Review of International Economics, Blackwell Publishing, vol. 16(1), pages 199-213, 02. [Downloadable!] (restricted)
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(explanations, 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.)

  1. Giovanni Peri & Francisco Requena, 2009. "The Trade Creation Effect of Immigrants: Testing the Theory on the Remarkable case of Spain," Development Working Papers 275, Centro Studi Luca d\'Agliano, University of Milano. [Downloadable!]
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This page was last updated on 2009-11-25.


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