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Immigrant business ownership and imports in Canada

Author

Listed:
  • Loretta Fung
  • Huju Liu

Abstract

This paper empirically investigates the effect of immigrant business ownership on Canada's imports using a firm‐level database with business ownership information and import data from 2002 to 2012. Our findings show that immigrant business ownership positively and significantly affects imports from the owners' origin, but it has little impact on imports from other regions. Compared to Canadian‐owned firms, immigrant‐owned firms are more likely to import, with a greater total value, a larger number of products and a higher average value per product from the owners' origin. The impact is larger for wholesalers than for manufacturers. The study also differentiates immigrant owners by their years since arrival. Firms owned by immigrants arriving within five years are more likely to import from the owners' origin than those owned by Canadians under the age of 45 by 14.66 percentage points, but this difference narrows to 6.22 percentage points when the owners stay for more than 15 years. Our findings suggest that while immigrant owners may enhance imports through connections with the origin, this advantage deteriorates with separation. Additionally, we find that immigrant business ownership has little effect on the total value of imports, as higher imports from the owners' origin are offset by lower imports from non‐origin regions. Le présent article étudie empiriquement l'effet de la propriété d'entreprises par des immigrants sur les importations au Canada en utilisant une base de données sur les entreprises contenant de l'information sur la propriété de l'entreprise et les importations de 2002 à 2012. Nos résultats montrent que la propriété d'entreprises par des immigrants a une incidence positive et importante sur les importations en provenance du pays d'origine des propriétaires, mais peu d'incidence sur les importations en provenance d'autres régions. Par rapport aux entreprises détenues par des Canadiens, celles appartenant à des immigrants sont plus susceptibles d'importer, avec une valeur totale plus élevée, un plus grand nombre de produits et une valeur moyenne plus élevée par produit provenant du pays d'origine des propriétaires. L'incidence est encore plus grande pour les grossistes que pour les entreprises manufacturières. L'étude classe également les propriétaires immigrants selon le nombre d'années depuis leur arrivée au pays. Les entreprises appartenant à des immigrants arrivés depuis moins de cinq ans sont plus susceptibles d'importer des marchandises du pays d'origine des propriétaires que celles appartenant à des Canadiens de moins de 45 ans, à hauteur de 14,66 points de pourcentage, mais cette différence se réduit à 6,22 points de pourcentage lorsque les propriétaires sont au pays depuis plus de 15 ans. Nos résultats suggèrent que si les propriétaires immigrants peuvent stimuler les importations grâce à leurs liens avec leur pays d'origine, cet avantage se détériore au fil du temps. De plus, nous constatons que la propriété d'une entreprise par un immigrant a peu d'effet sur la valeur totale des importations, car l'augmentation des importations en provenance du pays d'origine des propriétaires est compensée par la diminution des importations en provenance d'autres régions.

Suggested Citation

  • Loretta Fung & Huju Liu, 2025. "Immigrant business ownership and imports in Canada," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 58(3), pages 961-989, August.
  • Handle: RePEc:wly:canjec:v:58:y:2025:i:3:p:961-989
    DOI: 10.1111/caje.70017
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    References listed on IDEAS

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