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Trade and Migration to New Zealand

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Listed:
  • David Law
  • John Bryant
  • Murat Genc

Abstract

This paper examines the hypothesis that a greater stock of migrants in New Zealand from a particular country leads to more trade between that country and New Zealand. The literature suggests that migrants can stimulate trade by lowering transaction costs, and by bringing with them preferences for goods produced in their home country. We use panel data techniques within the framework of a standard gravity model of trade. Our sample includes an average of over 170 countries for the years 1981 to 2001. Previous studies of trade and migration have not dealt satisfactorily with problems of unobserved heterogeneity and selection bias. We address these problems using correlated random effects and selection models. Results suggest that larger migrant stocks are associated with higher trade flows

Suggested Citation

  • David Law & John Bryant & Murat Genc, 2004. "Trade and Migration to New Zealand," Econometric Society 2004 Australasian Meetings 231, Econometric Society.
  • Handle: RePEc:ecm:ausm04:231
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    File URL: http://repec.org/esAUSM04/up.13936.1077851643.pdf
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    References listed on IDEAS

    as
    1. Combes, Pierre-Philippe & Lafourcade, Miren & Mayer, Thierry, 2003. "Can Business and Social Networks Explain the Border Effect Puzzle?," CEPR Discussion Papers 3750, C.E.P.R. Discussion Papers.
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    3. Wagner, Don & Head, Keith & Ries, John, 2002. "Immigration and the Trade of Provinces," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(5), pages 507-525, December.
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    5. John Bryant & David Law, 2004. "New Zealand’s Diaspora and Overseas-born Population," Treasury Working Paper Series 04/13, New Zealand Treasury.
    6. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
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    More about this item

    Keywords

    Migration; Internatinoal Trade; Panel Data; New Zealand;
    All these keywords.

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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