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Examining the non-linear relationship between migration and trade

Author

Listed:
  • Guadalupe Serrano-Domingo

    (University of Valencia)

  • Francisco Requena-Silvente

    (University of Valencia)

Abstract

The migration-trade link has been studied extensively since the mid nineties, finding a positive impact through different channels. Based on the generalized propensity score (GPS) methodology, we estimate a dose-response function, depicting a non-linear impact of immigration on exports using regional data for Spain and Italy. For both countries the elasticity of province exports to immigration from a given nationality is always positive. However, it is magnitude varies with the level of immigrants: increasing with less than 100 immigrants; decreasing between 100 and 1500; increasing again with more than 1500. In contrast to previous studies that use country-level data, we find no exhaustion point in the effectiveness of the immigration networks on regional exports.

Suggested Citation

  • Guadalupe Serrano-Domingo & Francisco Requena-Silvente, 2013. "Examining the non-linear relationship between migration and trade," Working Papers 1310, Department of Applied Economics II, Universidad de Valencia.
    • Handle: RePEc:eec:wpaper:1310
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    References listed on IDEAS

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    More about this item

    Keywords

    Immigration; exports; generalized propensity score; dose-response function; Spanish provinces; Italian provinces;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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