IDEAS home Printed from https://ideas.repec.org/a/sae/soueco/v8y2007i1p1-20.html
   My bibliography  Save this article

Does Migration Matter in Trade? A Study of India's Exports to the GCC Countries

Author

Listed:
  • Sajitha Beevi Karayil

    (Sajitha Beevi Karayil is with Centre for Development Studies, Prasanthnagar Road, Ulloor, Thiruvananthapuram-695011, Kerala. Email: sajitha@cds.ac.in and sajithabk@yahoo.com)

Abstract

This article examines India's exports to the Gulf Cooperation Council (GCC) countries with a special focus on the influence of migration. In order to explain the growing orientation of India's exports towards the Gulf countries, we analyse the demand pattern of GCC as represented by its import structure. The GCC countries’ import structure reveals the influence of the Indian diaspora and the possible migration–trade link. The hypothesis of migration–trade nexus is further verified using a longitudinal gravity-type model. The econometric evidence also illustrates the strong immigrant preference effect for their home-country products. Thus, the preference similarity mechanism is seen to work in the India–GCC context despite the violation of its crucial assumption of income similarity. Overall, the study brings out the importance of migrant population as a unique source of advantage for India's exports to the region.

Suggested Citation

  • Sajitha Beevi Karayil, 2007. "Does Migration Matter in Trade? A Study of India's Exports to the GCC Countries," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 8(1), pages 1-20, January.
    • Handle: RePEc:sae:soueco:v:8:y:2007:i:1:p:1-20
    DOI: 10.1177/139156140600800101
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/139156140600800101
    Download Restriction: no
    File URL: https://libkey.io/10.1177/139156140600800101?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
    ---><---

    References listed on IDEAS

    as
    1. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    2. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
    3. Sourafel Girma & Zhihao Yu, 2002. "The link between immigration and trade: Evidence from the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 115-130, March.
    4. Leamer, Edward E, 1993. "Factor-Supply Differences as a," American Economic Review, American Economic Association, vol. 83(2), pages 436-439, May.
    5. Razin, Eran, 1990. "Immigrant Entrepreneurs in Israel, Canada and California," Institute for Social Science Research, Working Paper Series qt21f995xx, Institute for Social Science Research, UCLA.
    6. Min, Pyong Gap, 1990. "Korean Immigrants in Los Angeles," Institute for Social Science Research, Working Paper Series qt2w76n5vs, Institute for Social Science Research, UCLA.
    7. Dunlevy, James A. & Hutchinson, William K., 1999. "The Impact of Immigration on American Import Trade in the Late Nineteenth and Early Twentieth Centuries," The Journal of Economic History, Cambridge University Press, vol. 59(4), pages 1043-1062, December.
    8. Asad Alam, 1995. "The New Trade Theory and its Relevance to the Trade Policies of Developing Countries," The World Economy, Wiley Blackwell, vol. 18(3), pages 367-385, May.
    9. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
    10. Erik Lundbäck & Johan Torstensson, 1998. "Demand, comparative advantage and economic geography in international trade: Evidence from the OECD," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 134(2), pages 230-249, June.
    11. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ayyub, Salahuddin & Manral, Prerana, 2017. "A partial equilibrium analysis of India's agricultural export to GCC: looking beyond the status quo(2009-2015)," MPRA Paper 84365, University Library of Munich, Germany.

    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. Roger White, 2010. "Migration and International Trade," Books, Edward Elgar Publishing, number 13670.
    2. David Law & Murat Genç & John Bryant, 2013. "Trade, Diaspora and Migration to New Zealand," The World Economy, Wiley Blackwell, vol. 36(5), pages 582-606, May.
    3. White, Roger & Tadesse, Bedassa, 2008. "Immigrants, cultural distance and U.S. state-level exports of cultural products," The North American Journal of Economics and Finance, Elsevier, vol. 19(3), pages 331-348, December.
    4. Selim Çagatay & Murat Genç & Onur Koska, 2013. "The Impact of Immigration on International Trade in Europe: The Case of the EU-Mediterranean-Eastern Europe Zone," ERSA conference papers ersa13p376, European Regional Science Association.
    5. Ghatak, Subrata & Piperakis, Andromachi S., 2007. "The impact of Eastern European immigration to UK trade," Economics Discussion Papers 2007-3, School of Economics, Kingston University London.
    6. Subrata Ghatak & Monica Ioana Pop Silaghi & Vince Daly, 2009. "Trade and migration flows between some CEE countries and the UK," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(1), pages 61-78.
    7. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 9, pages 301-337, Edward Elgar Publishing.
    8. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2018. "Do Migrants Facilitate Internationalization? A Review of the Literature," Working Papers 2018:11, Örebro University, School of Business, revised 19 Dec 2019.
    9. Horácio Faustino & João Peixoto, 2009. "Immigration-Trade Links: The Impact of Recent Immigration on Portuguese Trade," Working Papers Department of Economics 2009/36, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    10. Jansen, Marion & Piermartini, Roberta, 2005. "The impact of Mode 4 liberalization on bilateral trade flows," WTO Staff Working Papers ERSD-2005-06, World Trade Organization (WTO), Economic Research and Statistics Division.
    11. Dinçer, Gönül, 2014. "Turkey’s Rising Imports from BRICS: A Gravity Model Approach," MPRA Paper 61979, University Library of Munich, Germany.
    12. Nuno Carlos Leitão, 2013. "The Impact of Immigration on Portuguese Intra-Industry Trade," Working Papers 2013.20, Fondazione Eni Enrico Mattei.
    13. Campbell, Douglas L., 2010. "History, culture, and trade: a dynamic gravity approach," MPRA Paper 24014, University Library of Munich, Germany.
    14. 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.
    15. Roger White & Bedassa Tadesse, 2011. "International Migration and Economic Integration," Books, Edward Elgar Publishing, number 14318.
    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. Albert Millogo & Ines Trojette, 2020. "Pro-trade effects of MENA immigrants in France: does governance matter?," Economics Bulletin, AccessEcon, vol. 40(4), pages 3219-3230.
    18. Horácio Faustino & Isabel Proença, 2011. "Effects of Immigration on Intra-Industry Trade: A logit analysis," Working Papers Department of Economics 2011/19, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    19. Hatzigeorgiou Andreas, 2010. "Migration as Trade Facilitation: Assessing the Links between International Trade and Migration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-35, March.
    20. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2018. "Anti-Migration as a Threat to Internationalization? A Review of the Migration-Internationalization Literature," GLO Discussion Paper Series 287, Global Labor Organization (GLO).

    More about this item

    Keywords

    JEL: F10; JEL: F14; JEL: F15; JEL: F16; JEL: F22; Indian Agriculture; Agricultural Trade; WTO Agreement on Agriculture;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

    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:sae:soueco:v:8:y:2007:i:1:p:1-20. 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: SAGE Publications (email available below). General contact details of provider: http://www.ips.lk/ .

    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.