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The Impact of Migration on Foreing Trade in Bolivia

Author

Listed:
  • Canavire Bacarreza, Gustavo Javier

    (IISEC Universidad Católica Boliviana "San Pablo")

  • Ehrlich, Laura

    (Independent)

Abstract

While the casual relationship between migration and trade has not been studied thoroughly, estimation results of empirical studies suggest that important aspects determinig trade volumes can be missed if additional factors, including migration, are not considered. The current paper aims at testing the impact of migration on foreing trade in a small economy like Bolivia. We test the impact of both, immigration and emigration on exports and imports and also on intra-industry trade. We use gravity model approach to this end. We control for the economic size and geographical location of trade partners, and for changes in terms of trade. Our results show relatilevy similar impact of both inmigration on foreing trade, confirming positive significant effect of immigration on exports and imports also in Bolivia, even when the migration flows in Bolivia are not as high as in the case of most countries analyzed previously. The imports elasticities are slightly higher; both elasticities are closer to the lower margin of the range based on previous studies. We can conclude positive effect of emigration being higher than that of immigration. Our estimation results on Bolivia show that migration has effect on foreing trade, even if the share of migrants in the population is low.

Suggested Citation

  • Canavire Bacarreza, Gustavo Javier & Ehrlich, Laura, 2006. "The Impact of Migration on Foreing Trade in Bolivia," Revista Latinoamericana de Desarrollo Economico, Instituto de Investigaciones Socio-Económicas (IISEC), Universidad Católica Boliviana, issue 6, pages 125-146, Abril.
  • Handle: RePEc:ris:revlde:0604
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    Cited by:

    1. Ehrhart, Helene & Le Goff, Maelan & Rocher?, Emmanuel & Singh, Raju Jan, 2014. "Does migration foster exports ? evidence from Africa," Policy Research Working Paper Series 6739, The World Bank.

    More about this item

    Keywords

    Bolivia; migration; economy;

    JEL classification:

    • Z00 - Other Special Topics - - General - - - General

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