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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, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

  • Pierre-Philippe Combes

    ()
    (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, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, 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, CEPR - Center for Economic Policy Research - CEPR)

  • 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, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris, Université de Valenciennes et du Hainaut Cambrésis [Valenciennes] - Université de Valenciennes et du Hainaut-Cambresis)

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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Bibliographic Info

Paper provided by HAL in its series PSE Working Papers with number halshs-00566772.

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Date of creation: Feb 2009
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Handle: RePEc:hal:psewpa:halshs-00566772

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

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Cited by:
  1. Giovanni Peri & Francisco Requena, 2009. "The Trade Creation Effect of Immigrants: Testing the Theory on the Remarkable Case of Spain," CReAM Discussion Paper Series 0915, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. Peter Egger & Maximilian Von Ehrlich & Douglas R. Nelson, 2011. "Migration and Trade," CESifo Working Paper Series 3467, CESifo Group Munich.
  3. 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).
  4. 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.
  5. 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, Emerald Group Publishing, vol. 4(1), pages 17-27, February.
  6. 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).
  7. 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.
  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, Elsevier, vol. 116(3), pages 554-557.
  9. Guadalupe Serrano-Domingo & Francisco Requena-Silvente, 2013. "Examining the non-linear relationship between migration and trade," Working Papers, Department of Applied Economics II, Universidad de Valencia 1310, Department of Applied Economics II, Universidad de Valencia.
  10. Francisco Requena & Vicente Pallardó & Andrés Artal, 2012. "Which immigrants stimulate exports in their host country? (en homenaje a José Vicente Blanes)," Working Papers, Department of Applied Economics II, Universidad de Valencia 1207, Department of Applied Economics II, Universidad de Valencia.
  11. 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.
  12. Michael Good, 2012. "How Localized is the Pro-trade Effect of Immigration? Evidence from Mexico and the United States," Working Papers, Florida International University, Department of Economics 1203, Florida International University, Department of Economics.

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