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Immigration Wave Effects on Canada's Trade Flows

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  • Jamie Partridge
  • Hartley Furtan

Abstract

We utilize an enhanced gravity model to estimate the effect of lagged immigration waves on Canadian imports and exports by province. Empirically, this model was tested using Canadian data on import and export flows to the top 40 countries of origin for Canadian immigrants based upon the composition of the most recent immigrant wave. The results are consistent with previous studies, where immigrants increased both import and export trade flows. By adding the provincial immigrant wave variable, it was also found that new immigrants affect imports almost immediately, whereas for exports, the immigrant effect is not significant for at least five years and may take as long as 20 years to reach full impact.

Suggested Citation

  • Jamie Partridge & Hartley Furtan, 2008. "Immigration Wave Effects on Canada's Trade Flows," Canadian Public Policy, University of Toronto Press, vol. 34(2), pages 193-214, June.
  • Handle: RePEc:cpp:issued:v:34:y:2008:i:2:p:193-214
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    File URL: http://dx.doi.org/10.3138/cpp.34.2.193
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    References listed on IDEAS

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    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Picot, Garnett & Sweetman, Arthur, 2005. "The Deteriorating Economic Welfare of Immigrants and Possible Causes: Update 2005," Analytical Studies Branch Research Paper Series 2005262e, Statistics Canada, Analytical Studies Branch.
    3. Melitz, Jacques, 2007. "North, South and distance in the gravity model," European Economic Review, Elsevier, vol. 51(4), pages 971-991, May.
    4. James E. Rauch, 2001. "Business and Social Networks in International Trade," Journal of Economic Literature, American Economic Association, vol. 39(4), pages 1177-1203, December.
    5. Peter Kennedy, 2003. "A Guide to Econometrics, 5th Edition," MIT Press Books, The MIT Press, edition 5, volume 1, number 026261183x, January.
    6. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
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    Citations

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    Cited by:

    1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters,in: Migration Impact Assessment, chapter 9, pages 301-337 Edward Elgar Publishing.
    2. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2016. "The Brexit Trade Disruption Revisited," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 17(1).
    3. repec:eee:touman:v:52:y:2016:i:c:p:221-229 is not listed on IDEAS
    4. Andreas Hatzigeorgiou & Magnus Lodefalk, 2016. "Migrants’ Influence on Firm-level Exports," Journal of Industry, Competition and Trade, Springer, vol. 16(4), pages 477-497, December.
    5. BELLINO, Antonella & CELI, Giuseppe, 2016. "The Migration-Trade Nexus in the Presence of Vertical and Horizontal Product Differentiation," CELPE Discussion Papers 137, CELPE - Centre of Labour Economics and Economic Policy, University of Salerno, Italy.
    6. Robert E.B. Lucas, 2014. "The migration–trade link in developing economies: a summary and extension of evidence," Chapters,in: International Handbook on Migration and Economic Development, chapter 11, pages 288-326 Edward Elgar Publishing.
    7. Giulia Bettin & Alessia Lo Turco, 2012. "A Cross-Country View on South-North Migration and Trade: Dissecting the Channels," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(4), pages 4-29, July.
    8. Grubel, Herbert & Grady, Patrick, 2012. "Fiscal transfers to immigrants in Canada: responding to critics and a revised estimate," MPRA Paper 37406, University Library of Munich, Germany, revised 06 Mar 2012.
    9. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2015. "The Role of Foreign Networks for Firm Export of Services," Working Papers 2015:6, Örebro University, School of Business.

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