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Sectoral Linkages and the Impact of Immigration on Export Performance

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  • Amandine Aubry
  • Anthony Edo

Abstract

This paper studies how immigrants in intermediate sectors affect downstream export performance. We develop a theoretical model in which a sector’s exports depend not only on its own immigrant workforce, but also on immigrant labor in input-supplying sectors. Using a new dataset on U.S. input–output from 2003-2017, we show that increases in immigrant employment in these sectors raise exports in connected downstream industries. This effect operates partly through improved production efficiency that lowers upstream input costs. By linking labor migration to production networks, we identify a new channel through which immigration shapes comparative advantage in international trade.

Suggested Citation

  • Amandine Aubry & Anthony Edo, 2025. "Sectoral Linkages and the Impact of Immigration on Export Performance," Working Papers 2025-17, CEPII research center.
    • Handle: RePEc:cii:cepidt:2025-17
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    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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