IDEAS home Printed from https://ideas.repec.org/a/eee/streco/v63y2022icp25-34.html
   My bibliography  Save this article

Back to the future: the long-term effects of skilled migration on tech-intensive trade

Author

Listed:
  • Alfano, Vincenzo
  • Gaeta, Giuseppe Lucio
  • Petraglia, Carmelo
  • Vecchione, Gaetano

Abstract

An emerging literature suggests that current international trade is partially explained by historical migration flows, alongside current ones. This paper provides new insights and empirical evidence about this long-run pro-trade effect of historical migration. Using hybrid panel data models, we study the link between the Italian emigration of skilled and unskilled workers in the late nineteenth and early twentieth centuries and the current knowledge-based high-technology manufacturing exports of Italian regions. Our findings support the idea that historical skilled migration has a greater long-term impact than historical unskilled migration.

Suggested Citation

  • Alfano, Vincenzo & Gaeta, Giuseppe Lucio & Petraglia, Carmelo & Vecchione, Gaetano, 2022. "Back to the future: the long-term effects of skilled migration on tech-intensive trade," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 25-34.
    • Handle: RePEc:eee:streco:v:63:y:2022:i:c:p:25-34
    DOI: 10.1016/j.strueco.2022.08.009
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0954349X22001266
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.strueco.2022.08.009?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Massimiliano Bratti & Luca Benedictis & Gianluca Santoni, 2014. "On the pro-trade effects of immigrants," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 557-594, August.
    2. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    3. Konrad B Burchardi & Thomas Chaney & Tarek A Hassan, 2019. "Migrants, Ancestors, and Foreign Investments," Review of Economic Studies, Oxford University Press, vol. 86(4), pages 1448-1486.
    4. Christopher Parsons & Pierre‐Louis Vézina, 2018. "Migrant Networks and Trade: The Vietnamese Boat People as a Natural Experiment," Economic Journal, Royal Economic Society, vol. 128(612), pages 210-234, July.
    5. Felbermayr, Gabriel J. & Toubal, Farid, 2012. "Revisiting the Trade-Migration Nexus: Evidence from New OECD Data," World Development, Elsevier, vol. 40(5), pages 928-937.
    6. Cansin Arslan & Jean-Christophe Dumont & Zovanga Kone & Yasser Moullan & Caglar Ozden & Christopher Parsons & Theodora Xenogiani, 2015. "A New Profile of Migrants in the Aftermath of the Recent Economic Crisis," OECD Social, Employment and Migration Working Papers 160, OECD Publishing.
    7. Frédéric Docquier & Elisabetta Lodigiani, 2010. "Skilled Migration and Business Networks," Open Economies Review, Springer, vol. 21(4), pages 565-588, September.
    8. repec:hal:spmain:info:hdl:2441/4j5snkuat19kma9diah5p0g5eq is not listed on IDEAS
    9. Reinhard Schunck, 2013. "Within and between estimates in random-effects models: Advantages and drawbacks of correlated random effects and hybrid models," Stata Journal, StataCorp LP, vol. 13(1), pages 65-76, March.
    10. Robert E. B. Lucas, 2001. "Diaspora and Development: Highly Skilled Migrants from East Asia," Boston University - Department of Economics - The Institute for Economic Development Working Papers Series dp-120, Boston University - Department of Economics.
    11. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    12. Ashish Arora & Alfonso Gambardella, 2005. "The Globalization of the Software Industry: Perspectives and Opportunities for Developed and Developing Countries," NBER Chapters, in: Innovation Policy and the Economy, Volume 5, pages 1-32, National Bureau of Economic Research, Inc.
    13. Konrad Buchardi & Thomas Chaney & Tarek Hassan, 2019. "Migrants, Ancestors and Foreign Investments," SciencePo Working papers hal-03260191, HAL.
    14. Egger, Peter H. & Ehrlich, Maximilian v. & Nelson, Douglas R., 2020. "The trade effects of skilled versus unskilled migration," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 448-464.
    15. Giovanni Peri & Francisco Requena‐Silvente, 2010. "The trade creation effect of immigrants: evidence from the remarkable case of Spain," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(4), pages 1433-1459, November.
    16. Konrad Buchardi & Thomas Chaney & Tarek Hassan, 2019. "Migrants, Ancestors and Foreign Investments," Post-Print hal-03260191, HAL.
    17. Ina Ganguli, 2015. "Immigration and Ideas: What Did Russian Scientists "Bring" to the United States?," Journal of Labor Economics, University of Chicago Press, vol. 33(S1), pages 257-288.
    18. Wagner, Don & Head, Keith & Ries, John, 2002. "Immigration and the Trade of Provinces," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 507-525, December.
    19. 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 302-316, May.
    20. Hatton, Timothy J. & Williamson, Jeffrey G., 1998. "The Age of Mass Migration: Causes and Economic Impact," OUP Catalogue, Oxford University Press, number 9780195116519.
    21. Konrad B Burchardi & Thomas Chaney & Tarek A Hassan, 2019. "Migrants, Ancestors, and Foreign Investments," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 86(4), pages 1448-1486.
    22. Felbermayr, Gabriel J. & Jung, Benjamin, 2009. "The pro-trade effect of the brain drain: Sorting out confounding factors," Economics Letters, Elsevier, vol. 104(2), pages 72-75, August.
    23. Don Wagner & Keith Head & John Ries, 2002. "Immigration and the Trade of Provinces," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 507-525, November.
    24. Ben Dolman, 2008. "Migration, trade and investment," Staff Working Papers 0803, Productivity Commission, Government of Australia.
    25. Max Nathan, 2014. "The wider economic impacts of high-skilled migrants: a survey of the literature for receiving countries," IZA Journal of Migration and Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-20, December.
    26. Carmelo Petraglia & Gaetano Vecchione, 2021. "Long-run pro-trade effects of diasporas: evidence on Italian regions," Spatial Economic Analysis, Taylor & Francis Journals, vol. 16(1), pages 47-72, January.
    27. Anna Maria Ferragina & Stefano Iandolo & Erol Taymaz, 2021. "Decomposing the immigration-trade link using price and quantity margins: the role of education," Applied Economics, Taylor & Francis Journals, vol. 53(41), pages 4734-4749, September.
    28. Andreas Hatzigeorgiou & Magnus Lodefalk, 2021. "A literature review of the nexus between migration and internationalization," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 30(3), pages 319-340, April.
    29. 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.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Christopher R. Parsons & L. Alan Winters, 2014. "International migration, trade and aid: a survey," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 4, pages 65-112, Edward Elgar Publishing.
    2. Giorgia Giovannetti & Mauro Lonati, 2014. "The impact of product quality on the pro-trade elasticity of immigrants," Working Papers - Economics wp2014_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    3. Ariu, Andrea, 2022. "Foreign workers, product quality, and trade: Evidence from a natural experiment," Journal of International Economics, Elsevier, vol. 139(C).
    4. Egger, Peter H. & Ehrlich, Maximilian v. & Nelson, Douglas R., 2020. "The trade effects of skilled versus unskilled migration," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 448-464.
    5. Behncke, Nadine, 2014. "The structure of ethnic networks and exports: Evidence from Germany," University of Göttingen Working Papers in Economics 198, University of Goettingen, Department of Economics.
    6. Gianluca Orefice & Hillel Rapoport & Gianluca Santoni, 2021. "How Do Immigrants Promote Exports? Networks, Knowledge, Diversity," CESifo Working Paper Series 9288, CESifo.
    7. Marina Murat, 2014. "Soft, hard or smart power? International students and investments abroad," Center for Economic Research (RECent) 107, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    8. Giorgia Giovannetti & Mauro Lanati, 2017. "Do High-Skill Immigrants trigger High-Quality Trade?," The World Economy, Wiley Blackwell, vol. 40(7), pages 1345-1380, July.
    9. Marina Murat, 2013. "Education ties and investments abroad. Empirical evidence from the US and UK," Department of Economics (DEMB) 0014, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    10. BELLINO, Antonella & CELI, Giuseppe, 2016. "The Migration-Trade Nexus in the Presence of Vertical and Horizontal Product Differentiation," CELPE Discussion Papers 137, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    11. Marina Murat, 2014. "Soft, hard or smart power? International students and investments abroad," Department of Economics 0043, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    12. repec:mod:depeco:0014 is not listed on IDEAS
    13. Mariya Aleksynska & Giovanni Peri, 2014. "Isolating the Network Effect of Immigrants on Trade," The World Economy, Wiley Blackwell, vol. 37(3), pages 434-455, March.
    14. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect?," IZA Discussion Papers 6975, Institute of Labor Economics (IZA).
    15. Maria Santana-Gallego & Jordi Paniagua, 2022. "Tourism and migration: Identifying the channels with gravity models," Tourism Economics, , vol. 28(2), pages 394-417, March.
    16. Anna D’Ambrosio & Sandro Montresor, 2022. "The pro-export effect of subnational migration networks: new evidence from Spanish provinces," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 53-107, February.
    17. 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.
    18. Ding, Haoyuan & Fan, Haichao & Jin, Yuying & Qi, Tong, 2022. "Talented overseas returnees and outward foreign direct investment," European Economic Review, Elsevier, vol. 148(C).
    19. Gabriel J. Felbermayr & Benjamin Jung & Farid Toubal, 2010. "Ethnic Networks, Information, and International Trade: Revisiting the Evidence," Annals of Economics and Statistics, GENES, issue 97-98, pages 41-70.
    20. D'Ambrosio, Anna & Montresor, Sandro, 2017. "Migration and Trade Ows: New Evidence from Spanish Regions," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201724, University of Turin.
    21. 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.

    More about this item

    Keywords

    Skilled migration; Technology-intense goods; Trade; Diaspora effects;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:streco:v:63:y:2022:i:c:p:25-34. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/525148 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.