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The export effect of immigration into the USA

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  • Catherine Co
  • Patricia Euzent
  • Thomas Martin

Abstract

Much has been written on the connection between migration and international trade. Human history provides important examples of migrations leading to increased trade activity, with perhaps the most well-known example of the 'Overseas Chinese'. This study investigates the trade-related importance of Chinese and other immigrants into the USA. Previous studies may have underestimated (or overestimated) the relationship between trade and migration with nations treated as featureless plains rather than as varied landscapes. This study contends that an understanding of the immigration-trade relationship can be improved upon by examining the specific pattern and destination of immigration into specific US states. Using state level export data to 28 immigrant source countries in 1993, a strong immigration-trade link is found, reinforcing conclusions made by previous research using country level data. The compelling connection between immigration and trade found in this study and others suggests that future changes to US immigration policies necessitate that their trade effects also be taken into account.

Suggested Citation

  • Catherine Co & Patricia Euzent & Thomas Martin, 2004. "The export effect of immigration into the USA," Applied Economics, Taylor & Francis Journals, vol. 36(6), pages 573-583.
  • Handle: RePEc:taf:applec:v:36:y:2004:i:6:p:573-583
    DOI: 10.1080/0003684042000217616
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    References listed on IDEAS

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    1. Jonathan Eaton & Samuel Kortum, 1997. "Technology and Bilateral Trade," NBER Working Papers 6253, National Bureau of Economic Research, Inc.
    2. Alan Deardorff, 1998. "Determinants of Bilateral Trade: Does Gravity Work in a Neoclassical World?," NBER Chapters,in: The Regionalization of the World Economy, pages 7-32 National Bureau of Economic Research, Inc.
    3. Robert C. Feenstra & Wen Hai & Wing T. Woo & Shunli Yao, "undated". "The U.S.-China Bilateral Trade Balance: It'S Size And Determinants," Department of Economics 98-09, California Davis - Department of Economics.
    4. 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.
    5. Jeffrey A. Frankel, 1998. "The Regionalization of the World Economy," NBER Books, National Bureau of Economic Research, Inc, number fran98-1, January.
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