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Re-examining the migration–trade link using province data: An application of the generalized propensity score

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  • Serrano-Domingo, Guadalupe
  • Requena-Silvente, Francisco

Abstract

The migration–trade link has been studied extensively since the mid nineties, finding a positive impact through different channels. Based on the generalized propensity score (GPS) methodology, we estimate a dose–response function, depicting a non-linear impact of immigration on exports using province data for Spain and Italy. For both countries the response of province exports to more immigrants from a given nationality is always positive, although varies with the level of immigrants. First we find neither minimum threshold nor exhaustion point in the effectiveness of the immigration networks on province exports. Second we find that the value of the potential bilateral exports reaches a maximum in relatively small ethnic networks: between 70 and 100 foreign-born people of the same nationality. From a socio-economic policy perspective our results support local policies encouraging ethnic diversity in order to stimulate external trade.

Suggested Citation

  • Serrano-Domingo, Guadalupe & Requena-Silvente, Francisco, 2013. "Re-examining the migration–trade link using province data: An application of the generalized propensity score," Economic Modelling, Elsevier, vol. 32(C), pages 247-261.
  • Handle: RePEc:eee:ecmode:v:32:y:2013:i:c:p:247-261
    DOI: 10.1016/j.econmod.2013.02.002
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    Citations

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    Cited by:

    1. Magrini, Emiliano & Montalbano, Pierluigi & Nenci, Silvia & Salvatici, Luca, 2014. "Agricultural trade distortions during recent international price spikes: what implications for food security?," 2014 International Congress, August 26-29, 2014, Ljubljana, Slovenia 182726, European Association of Agricultural Economists.
    2. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2013. "Are the EU trade preferences really effective? A Generalized Propensity Score evaluation of the Southern Mediterranean Countries' case in agriculture and fishery," Working Papers 2/13, Sapienza University of Rome, DISS.
    3. Michael Good, 2013. "Geographic Proximity and the Pro-trade Effect of Migration: State-level Evidence from Mexican Migrants in the United States," 2013 Papers pgo530, Job Market Papers.
    4. Emiliano Magrini & Pierluigi Montalbano & Silvia Nenci, 2013. "Are the EU trade preferences really effective? A Generalized Propensity Score evaluation of the Southern Mediterranean Countries' case in agriculture and fishery," Working Papers 2/13, Sapienza University of Rome, DISS.
    5. repec:oup:ajagec:v:99:y:2017:i:4:p:847-871. is not listed on IDEAS
    6. Riccardo Fiorentini & Alina Verashchagina, 2017. "Immigration and Trade: The Case Study of Veneto Region in Italy," Working Papers 03/2017, University of Verona, Department of Economics.
    7. repec:eee:ecmode:v:68:y:2018:i:c:p:178-189 is not listed on IDEAS

    More about this item

    Keywords

    Immigration; Exports; Generalized propensity score; Dose–response function; Spanish provinces; Italian provinces;

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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