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Product Complexity, Quality Of Institutions And The Pro-Trade Effect Of Immigrants

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  • Anthony Briant

    ()
    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris)

  • Pierre-Philippe Combes

    ()
    (GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille - Université de la Méditerranée - Aix-Marseille II - Université Paul Cézanne - Aix-Marseille III - École des Hautes Études en Sciences Sociales (EHESS) - CNRS : UMR6579)

  • Miren Lafourcade

    (PSE - Paris-Jourdan Sciences Economiques - CNRS : UMR8545 - École des Hautes Études en Sciences Sociales (EHESS) - École des Ponts ParisTech (ENPC) - École normale supérieure [ENS] - Paris)

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 from a 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 HAL in its series PSE Working Papers with number halshs-00382510.

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Date of creation: 07 May 2009
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Handle: RePEc:hal:psewpa:halshs-00382510

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Keywords: MAUP; concentration; agglomeration; wage equations; gravity;

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Citations

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Cited by:
  1. Peter H. Egger & Maximilian von Ehrlich & Douglas R. Nelson, 2012. "Migration and Trade," The World Economy, Wiley Blackwell, vol. 35(2), pages 216-241, 02.
  2. Mauro Lanati, 2014. "The sectoral pro-trade effects of ethnic networks within a Ricardian model of trade," Discussion Papers 2014/179, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
  3. Francisco Requena & Vicente Pallardó & Andrés Artal, 2012. "Which immigrants stimulate exports in their host country? (en homenaje a José Vicente Blanes)," Working Papers 1207, Department of Applied Economics II, Universidad de Valencia.
  4. Guadalupe Serrano-Domingo & Francisco Requena-Silvente, 2013. "Examining the non-linear relationship between migration and trade," Working Papers 1310, Department of Applied Economics II, Universidad de Valencia.
  5. Bratti, Massimiliano & De Benedictis, Luca & Santoni, Gianluca, 2012. "On the Pro-Trade Effects of Immigrants," IZA Discussion Papers 6628, Institute for the Study of Labor (IZA).
  6. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect?," IZA Discussion Papers 6975, Institute for the Study of Labor (IZA).
  7. Giovanni Peri & Francisco Requena, 2009. "The Trade Creation Effect of Immigrants: Evidence from the Remarkable Case of Spain," NBER Working Papers 15625, National Bureau of Economic Research, Inc.
  8. Artal-Tur, Andrés & Pallardó-López, Vicente J. & Requena-Silvente, Francisco, 2012. "The trade-enhancing effect of immigration networks: New evidence on the role of geographic proximity," Economics Letters, Elsevier, vol. 116(3), pages 554-557.
  9. Michael Good, 2012. "How Localized is the Pro-trade Effect of Immigration? Evidence from Mexico and the United States," Working Papers 1203, Florida International University, Department of Economics.
  10. Hélène Ehrhart & Maëlan Le Goff & Emmanuel Rocher & Raju Jan Singh, 2012. "Does Migration Foster Exports? An African Perspective," Working Papers 2012-38, CEPII research center.
  11. Faqin Lin, 2011. "The pro-trade impacts of immigrants: a meta-analysis of network effects," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 4(1), pages 17-27, February.
  12. 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.

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