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Propagation of Immigration Shocks through Firm-to-Firm Trade Networks

Author

Listed:
  • Akgündüz, Yusuf Emre

    (Sabanci University)

  • Aydemir, Abdurrahman B.

    (Sabanci University)

  • Cilasun, Seyit Mümin

    (TED University)

  • Kirdar, Murat Güray

    (Bogazici University)

Abstract

This paper investigates the degree to which immigration shock to a region propagates through supply chains. Using the unexpected arrival of Syrian refugees densely concentrated in border regions of Turkey, we estimate how firms throughout the country are affected in terms of their sales, employment, and wages. We also estimate the effect of the shock on interprovincial trade, focusing on trade volume and network formation. The results point to positive spillover effects of immigration for firms with pre-existing links to Syrian refugee-hosting regions through upstream and downstream linkages. We further find evidence for increased trade volume and network expansion through new trade linkages.

Suggested Citation

  • Akgündüz, Yusuf Emre & Aydemir, Abdurrahman B. & Cilasun, Seyit Mümin & Kirdar, Murat Güray, 2024. "Propagation of Immigration Shocks through Firm-to-Firm Trade Networks," IZA Discussion Papers 16770, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp16770
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    More about this item

    Keywords

    immigration; propagation; firm-to-firm trade; employment; production networks;
    All these keywords.

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation

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