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Migration and Knowledge Diffusion: The Effect of Returning Refugees on Export Performance in the Former Yugoslavia

Author

Listed:
  • Dany Bahar

    (Brown University)

  • Andreas Hauptmann

    (Institute for Employment Research)

  • Cem Ozguzel

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Hillel Rapoport

    (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CEPII - Centre d'études prospectives et d'informations internationales, LISER - Luxembourg Institute of Socio-Economic Research)

Abstract

During the early 1990s Germany offered temporary protection to 700,000 Yugoslavian refugees fleeing war. By 2000, many had been repatriated. We exploit this natural experiment to investigate the role of returning migrants in boosting export performance upon their return. Using confidential German administrative data we find that industries with 10% more returning refugees exhibit larger exports between the pre- and post-war periods by 1 to 1.6%. We use exogenous allocation rules for asylum seekers within Germany as an instrument to deal with endogeneity concerns. We show evidence pointing to productivity shifts as the main mechanism behind our results. Consistently, we find our results are driven by refugees in occupations more apt to transfer knowledge, technologies and best-practices.

Suggested Citation

  • Dany Bahar & Andreas Hauptmann & Cem Ozguzel & Hillel Rapoport, 2024. "Migration and Knowledge Diffusion: The Effect of Returning Refugees on Export Performance in the Former Yugoslavia," PSE-Ecole d'économie de Paris (Postprint) halshs-03957218, HAL.
    • Handle: RePEc:hal:pseptp:halshs-03957218
    DOI: 10.1162/rest_a_01165
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