Advanced Search
MyIDEAS: Login to save this paper or follow this series

Immigrant Specificity and the Relationship between Trade and Immigration: Theory and Evidence

Contents:

Author Info

  • Harry P. Bowen

    ()
    (McColl School of Business, Queens University of Charlotte)

  • Jennifer Pedussel Wu

    ()
    (Berlin School of Economics)

Abstract

Studies routinely document that the nature of immigrant employment is largely specific: it often concentrates in non-traded goods sectors and many immigrants often have low inter-sectoral mobility. We consider these observed characteristics of immigrant employment for the question of how immigration affects a nation’s pattern of production and trade. We model an economy producing three goods; one is non-traded. Domestic labor and capital are domestically mobile but internationally immobile. Any new wave of immigration is assumed to comprise some workers who become specific to the non-traded goods sector. The model indicates that the output and trade effects of immigration depend importantly on the sectoral pattern of employment by existing and new immigrants. Empirical investigation of the model’s prediction for the relationship between immigration and trade flows in a panel dataset of OECD countries supports the prediction that trade and immigration are complements. The implications of the model and empirical findings for immigration policy are then discussed.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: ftp://ftp.drivehq.com/msbftp/repec/pdfs/wpapers/msbwp2011-01.pdf
Download Restriction: no

Bibliographic Info

Paper provided by McColl School of Business, Queens University of Charlotte in its series Discussion Paper Series with number 2011-01.

as in new window
Length: 44 pages
Date of creation: 2011
Date of revision: 13 Jul 2012
Publication status: Forthcoming in Southern Economic Journal
Handle: RePEc:msb:wpaper:2011-01

Contact details of provider:
Web page: http://mccoll.queens.edu/
More information through EDIRC

Related research

Keywords: immigration; international factor mobility; specific factor; trade; non-traded goods;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
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.:
as in new window
  1. Ethier, Wilfred J. & Svensson, Lars E. O., 1986. "The theoremes of international trade with factor mobility," Journal of International Economics, Elsevier, vol. 20(1-2), pages 21-42, February.
  2. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
  3. Timothy Hatton & Jeffery Williamson, 2002. "What Fundamentals Drive World Migration?," CEPR Discussion Papers 458, Centre for Economic Policy Research, Research School of Economics, Australian National University.
  4. Pia M. Orrenius & Madeline Zavodny, 2003. "Does immigration affect wages? A look at occupation-level evidence," Working Papers 0302, Federal Reserve Bank of Dallas.
  5. Domenico de Palo & Riccardo Faini & Alessandra Venturini, 2007. "The Social Assimilation of Immigrants," Development Working Papers 225, Centro Studi Luca d\'Agliano, University of Milano.
  6. James Harrigan, 1996. "Technology, Factor Supplies and International Specialization: Estimating the Neoclassical Model," NBER Working Papers 5722, National Bureau of Economic Research, Inc.
  7. George J. Borjas, 2003. "The Labor Demand Curve Is Downward Sloping: Reexamining The Impact Of Immigration On The Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 118(4), pages 1335-1374, November.
  8. Gordon H. Hanson & Matthew J. Slaughter, 1999. "The Rybczynski Theorem, Factor-Price Equalization, and Immigration: Evidence from U.S. States," NBER Working Papers 7074, National Bureau of Economic Research, Inc.
  9. Christian Dustmann & Tim Hatton & Ian Preston, 2005. "The Labour Market Effects of Immigration," Economic Journal, Royal Economic Society, vol. 115(507), pages F297-F299, November.
  10. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
  11. Michael S. Michael, 1992. "International Factor Mobility, Non-traded Goods, Tariffs, and the Terms of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 493-99, May.
  12. Lars E.O. Svensson, 1982. "Factor Trade and Goods Trade," NBER Working Papers 0999, National Bureau of Economic Research, Inc.
  13. Felbermayr, Gabriel & Kohler, Wilhelm K., 2007. "Immigration and native welfare," Munich Reprints in Economics 20608, University of Munich, Department of Economics.
  14. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2011. "The impact of immigration on international trade: a meta-analysis," Norface Discussion Paper Series 2011020, Norface Research Programme on Migration, Department of Economics, University College London.
  15. Carbaugh Robert J, 2007. "Is International Trade a Substitute for Migration?," Global Economy Journal, De Gruyter, vol. 7(3), pages 1-15, October.
  16. Faini, Riccardo & Venturini, Alessandra, 1993. "Trade, aid and migrations: Some basic policy issues," European Economic Review, Elsevier, vol. 37(2-3), pages 435-442, April.
  17. Gould, David M, 1994. "Immigrant Links to the Home Country: Empirical Implications for U.S. Bilateral Trade Flows," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 302-16, May.
  18. Daniel Trefler, 1997. "Immigrants and Natives in General Equilibrium Trade Models," NBER Working Papers 6209, National Bureau of Economic Research, Inc.
  19. David Card, 1996. "Immigrant Inflows, Native Outflows, and the Local Labor Market Impacts of Higher Immigration," Working Papers 747, Princeton University, Department of Economics, Industrial Relations Section..
  20. Ulrich Kohli, 2002. "Migration and foreign trade: Further results," Journal of Population Economics, Springer, vol. 15(2), pages 381-387.
  21. Djajic, Slobodan, 1997. "Illegal Immigration and Resource Allocation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(1), pages 97-117, February.
  22. Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
  23. Bowen, Harry P, 1983. "Changes in the International Distribution of Resources and Their Impact on U.S. Comparative Advantage," The Review of Economics and Statistics, MIT Press, vol. 65(3), pages 402-14, August.
  24. Christopher Bliss, 2003. "A Specific-Factors Model with Historical Application," Review of International Economics, Wiley Blackwell, vol. 11(2), pages 268-278, 05.
  25. Markusen, James R., 1983. "Factor movements and commodity trade as complements," Journal of International Economics, Elsevier, vol. 14(3-4), pages 341-356, May.
  26. Willi Leibfritz & Paul O'Brien & Jean-Christophe Dumont, 2003. "Effects of Immigration on Labour Markets and Government Budgets - An Overview," CESifo Working Paper Series 874, CESifo Group Munich.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2011. "The impact of immigration on international trade: a meta-analysis," Norface Discussion Paper Series 2011020, Norface Research Programme on Migration, Department of Economics, University College London.
  2. Fariastuti Djafar & Mohd Khairul Hisyam Hassan, 2013. "Does Trade With Labour Sending Countries Reduce Demand for Migrant Workers: A Lesson from Malaysia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(10), pages 1325-1336, October.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:msb:wpaper:2011-01. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (HP Bowen).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.