Immigration, Trade Costs and Trade: Gravity Evidence for Greece
This paper investigates the influence of immigration into Greece on the volumes of Greeces bilateral trade using a gravity modelling approach. An augmented gravity model is estimated using a panel data set for the period 1981-1991. The results show that immigration had a positive impact on the volume of Greeces bilateral exports, but no effect on its bilateral imports. This is consistent with immigration reducing transactions or trading costs on Greeces exports.
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