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The trade creation effect of immigrants: evidence from the remarkable case of Spain

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  • Giovanni Peri
  • Francisco Requena‐Silvente

Abstract

This paper investigates the immigration‐trade link using data on individual exporting transactions and immigrants in Spanish provinces between 1995 and 2008. We quantify the impact of new immigrants on the extensive margin (number of transactions) and intensive margin (average value per transaction) of exports. We find that immigrants significantly increase exports and that the effect is almost entirely due to an increase in the extensive margin. Consistent with the idea that immigrants reduce the fixed cost of exporting, we find stronger effects for differentiated goods and for countries that are culturally distant from Spain. Ce texte étudie le lien immigration‐commerce international à l’aide de données sur les transactions individuelles d’exportation et sur les immigrants dans les provinces espagnoles entre 1995 et 2008. On quantifie l’impact des nouveaux immigrants à la marge extensive (nombre de transactions d’exportation) et à la marge intensive (valeur moyenne des transactions d’exportation) . On découvre que les immigrants déclenchent une augmentation significative des exportations, et que cet effet est presqu’entièrement attribuable à un accroissement à la marge extensive. En ligne avec l’idée que les immigrants réduisent les coûts fixes de l’exportation, on découvre des effets plus forts pour les produits différenciés et pour des pays qui sont distants culturellement de l’Espagne.

Suggested Citation

  • Giovanni Peri & Francisco Requena‐Silvente, 2010. "The trade creation effect of immigrants: evidence from the remarkable case of Spain," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 43(4), pages 1433-1459, November.
  • Handle: RePEc:wly:canjec:v:43:y:2010:i:4:p:1433-1459
    DOI: 10.1111/j.1540-5982.2010.01620.x
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    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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