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Characteristics of immigrants and bilateral trade

Author

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  • José Vicente Blanes-Cristóbal

    (Universidad Pablo de Olavide)

Abstract

This paper tests the impact of immigration on bilateral trade using Spanish data from 1995 to 2003. It also explores some possible mechanisms behind this link. It uses a gravity equation for trade augmented with an immigrant’s stock variable and a set of control variables. The immigrants variable enters the estimated equation in different ways depending on immigrant relevant characteristics both individual and non individualspecific. Results show that there is a positive link between immigration and both exports and imports. We find evidence for the trade transaction cost channel but not for the preference one. The mechanisms behind this link are the information effect –immigrant’s additional information about products and about social and political institutions– and the social or ethnic network effect –immigrants with a medium level of education and those related to business activities are the ones who have a positive effect on bilateral trade.

Suggested Citation

  • José Vicente Blanes-Cristóbal, 2008. "Characteristics of immigrants and bilateral trade," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 16(3), pages 133-159, Winter.
  • Handle: RePEc:rev:reveca:v:16:y:2008:i:3:p:133-159
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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. Andreas Hatzigeorgiou & Magnus Lodefalk, 2015. "Trade, Migration and Integration – Evidence and Policy Implications," The World Economy, Wiley Blackwell, vol. 38(12), pages 2013-2048, December.
    3. Fourie, Johan & Santana-Gallego, María, 2013. "Ethnic reunion and cultural affinity," Tourism Management, Elsevier, vol. 36(C), pages 411-420.
    4. 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.
    5. Christopher R. Parsons & L. Alan Winters, 2014. "International migration, trade and aid: a survey," Chapters,in: International Handbook on Migration and Economic Development, chapter 4, pages 65-112 Edward Elgar Publishing.
    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.

    More about this item

    Keywords

    International Trade; migration;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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