IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this paper

The impact of immigration on international trade: a meta-analysis

Listed author(s):
  • Murat Genc

    ()

    (University of Otago, New Zealand)

  • Masood Gheasi

    ()

    (VU University Amsterdam, The Netherlands)

  • Peter Nijkamp

    ()

    (VU University Amsterdam, The Netherlands)

  • Jacques Poot

    ()

    (University of Waikato, New Zealand)

Since the early 1990s many empirical studies have been conducted on the impact of international migration on international trade, predominantly from the host country perspective. Because most studies have adopted broadly the same specification, namely a log-linear gravity model of export and import flows augmented with the logarithm of the stock of immigrants from specific source countries as an additional explanatory variable, the resulting elasticities are broadly comparable and yield a set of estimates that is well suited to meta-analysis. We therefore compile and analyze in this paper the distribution of immigration elasticities of imports and exports across 48 studies that yielded 300 observations. The results show that immigration complements rather than substitutes for trade flows between host and origin countries. Correcting for heterogeneity and publication bias, an increase in the number of immigrants by 10 percent may be expected to increase the volume of trade on average by about 1.5 percent. However, the impact is lower for trade in homogeneous goods. Over time, the growing stock of immigrants decreases the elasticities. The estimates are affected by the choice of some covariates, the nature of the data (cross-section or panel) and the estimation technique. Elasticities vary between countries in ways that cannot be fully explained by study characteristics; trade restrictions and immigration policies matter for the impact of immigration on trade. The migrant elasticity of imports is larger than that of exports in about half the countries considered, but the publication bias and heterogeneity-corrected elasticity is slightly larger for exports than for imports.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.norface-migration.org/publ_uploads/NDP_20_11.pdf
Download Restriction: no

Paper provided by Norface Research Programme on Migration, Department of Economics, University College London in its series Norface Discussion Paper Series with number 2011020.

as
in new window

Length:
Date of creation: Nov 2011
Handle: RePEc:nor:wpaper:2011020
Contact details of provider: Postal:
Drayton House, 30 Gordon Street, London WC1H 0AX

Phone: +44 (0)20 7679 5888
Fax: +44 (0)20 7916 2775
Web page: http://www.cream-migration.org/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as
in new window

  1. Massimiliano Bratti & Luca De Benedictis & Gianluca Santoni, 2013. "On the pro-trade effects of immigrants," Working Papers CEB 13-014, ULB -- Universite Libre de Bruxelles.
  2. Ashenfelter, O. & Harmon, C. & Oosterbeek, H., 1999. "A Review of Estimates of the Schooling/ Earnings Relationship, with tests for Publication Bias," Papers 99/20, College Dublin, Department of Political Economy-.
  3. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
  4. Rubinstein, Yona & Helpman, Elhanan & Melitz, Marc, 2008. "Estimating Trade Flows: Trading Partners and Trading Volumes," Scholarly Articles 3228230, Harvard University Department of Economics.
  5. Javorcik, Beata S. & Özden, Çaglar & Spatareanu, Mariana & Neagu, Cristina, 2011. "Migrant networks and foreign direct investment," Journal of Development Economics, Elsevier, vol. 94(2), pages 231-241, March.
  6. Gabriel J Felbermayr & Benjamin Jung & Farid Toubal, 2009. "Ethnic Networks, Information, and International Trade: Revisiting the Evidence," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 306/2009, Department of Economics, University of Hohenheim, Germany.
  7. José Vicente Blanes, 2010. "The link between immigration and trade in developing countries," Working Papers 10-07, Asociación Española de Economía y Finanzas Internacionales.
  8. Giovanni Peri & Francisco Requena, 2009. "The Trade Creation Effect of Immigrants: Evidence from the Remarkable Case of Spain," NBER Working Papers 15625, National Bureau of Economic Research, Inc.
  9. Roger White & Bedassa Tadesse, 2007. "Immigration Policy, Cultural Pluralism And Trade: Evidence From The White Australia Policy," Pacific Economic Review, Wiley Blackwell, vol. 12(4), pages 489-509, October.
  10. Cletus C. Coughlin & Howard J. Wall, "undated". "Ethnic Networks and Trade: Intensive vs. Extensive Margins," Discussion Papers 11/02, University of Nottingham, GEP.
  11. Jansen, Marion & Piermartini, Roberta, 2005. "The Impact of Mode 4 Liberalization on Bilateral Trade Flows," CEPR Discussion Papers 5382, C.E.P.R. Discussion Papers.
  12. José Vicente Blanes-Cristóbal, 2005. "Immigrant’s Characteristics and its different effects on bilateral trade," Working Papers 05-09, Asociación Española de Economía y Finanzas Internacionales.
  13. Roger White, 2007. "Immigrant-trade links, transplanted home bias and network effects," Applied Economics, Taylor & Francis Journals, vol. 39(7), pages 839-852.
  14. Jacques Poot & Anna Strutt, 2009. "International Trade Agreements and International Migration," Working Papers in Economics 09/06, University of Waikato, Department of Economics.
  15. Holmgren, Johan, 2007. "Meta-analysis of public transport demand," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(10), pages 1021-1035, December.
  16. Horácio C. Faustino & Nuno Carlos Leitão, 2008. "Immigration and Trade in Portugal: A Static and Dynamic Panel Data Analysis," Working Papers Department of Economics 2008/31, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  17. Bowen, Harry P. & Pédussel Wu, Jennifer, 2012. "Immigrant specificity and the relationship between trade and immigration: Theory and evidence," Working Papers 70, Berlin School of Economics and Law, Institute of Management Berlin (IMB).
  18. Subhayu Bandyopadhyay & Cletus C. Coughlin & Howard J. Wall, 2005. "Ethnic Networks and U.S. Exports," Working Papers 05-15old1 Classification-, Department of Economics, West Virginia University.
  19. Mark G. Herander & Luz A. Saavedra, 2005. "Exports and the Structure of Immigrant-Based Networks: The Role of Geographic Proximity," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 323-335, May.
  20. Catherine Co & Patricia Euzent & Thomas Martin, 2004. "The export effect of immigration into the USA," Applied Economics, Taylor & Francis Journals, vol. 36(6), pages 573-583.
  21. Peter Nijkamp & Masood Gheasi & Piet Rietveld, 2011. "Migrants and International Economic Linkages: A Meta-Overview," Spatial Economic Analysis, Taylor & Francis Journals, vol. 6(4), pages 359-376, July.
  22. James A. Dunlevy, 2006. "The Influence of Corruption and Language on the Protrade Effect of Immigrants: Evidence from the American States," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 182-186, February.
  23. Bergstrand, Jeffrey H, 1985. "The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence," The Review of Economics and Statistics, MIT Press, vol. 67(3), pages 474-481, August.
  24. Peter H. Egger & Maximilian von Ehrlich & Douglas R. Nelson, 2012. "Migration and Trade," The World Economy, Wiley Blackwell, vol. 35(2), pages 216-241, 02.
  25. Anderson, James E, 1979. "A Theoretical Foundation for the Gravity Equation," American Economic Review, American Economic Association, vol. 69(1), pages 106-116, March.
  26. repec:fth:prinin:425 is not listed on IDEAS
  27. Gibson, John & McKenzie, David & Stillman, Steven, 2009. "The Impacts of International Migration on Remaining Household Members: Omnibus Results from a Migration Lottery Program," IZA Discussion Papers 4375, Institute for the Study of Labor (IZA).
  28. Bedassa Tadesse & Roger White, 2010. "Cultural distance as a determinant of bilateral trade flows: do immigrants counter the effect of cultural differences?," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 147-152, January.
  29. David Law & John Bryant & Murat Genc, 2004. "Trade and Migration to New Zealand," Econometric Society 2004 Australasian Meetings 231, Econometric Society.
  30. Anne-Célia Disdier & Keith Head, 2008. "The Puzzling Persistence of the Distance Effect on Bilateral Trade," The Review of Economics and Statistics, MIT Press, vol. 90(1), pages 37-48, February.
  31. Marion Jansen & Roberta Piermartini, 2009. "Temporary Migration and Bilateral Trade Flows," The World Economy, Wiley Blackwell, vol. 32(5), pages 735-753, 05.
  32. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2005. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Journal of Economic Surveys, Wiley Blackwell, vol. 19(3), pages 451-477, 07.
  33. Tadesse, Bedassa & White, Roger, 2008. "Do immigrants counter the effect of cultural distance on trade? Evidence from US state-level exports," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2304-2318, December.
  34. David Card & Jochen Kluve & Andrea Weber, 2010. "Active Labour Market Policy Evaluations: A Meta-Analysis," Economic Journal, Royal Economic Society, vol. 120(548), pages 452-477, November.
  35. Marina Murat & Barbara Pistoresi, 2007. "Migrant networks: Empirical Implications for the Italian Bilateral Trade," Center for Economic Research (RECent) 003, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
  36. repec:pri:indrel:dsp01sq87bt631 is not listed on IDEAS
  37. Brander, Luke M. & Van Beukering, Pieter & Cesar, Herman S.J., 2007. "The recreational value of coral reefs: A meta-analysis," Ecological Economics, Elsevier, vol. 63(1), pages 209-218, June.
  38. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
  39. José Vicente Blanes-Cristóbal, 2008. "Characteristics of immigrants and bilateral trade," Revista de Economia Aplicada, Universidad de Zaragoza, Departamento de Estructura Economica y Economia Publica, vol. 16(3), pages 133-159, Winter.
  40. Gould, David M, 1994. "Immigrant Links to the Home Country: Empirical Implications for U.S. Bilateral Trade Flows," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 302-316, May.
  41. Noel Gaston & Douglas R. Nelson, 2013. "Bridging Trade Theory And Labour Econometrics: The Effects Of International Migration," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 98-139, 02.
  42. Ghatak, Subrata & Piperakis, Andromachi S., 2007. "The impact of Eastern European immigration to UK trade," Economics Discussion Papers 2007-3, School of Economics, Kingston University London.
  43. Christopher Parsons, "undated". "Do Migrants Really Foster Trade? The Trade-Migration Nexus, a Panel Approach 1960-2000," Discussion Papers 11/10, University of Nottingham, GEP.
  44. 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.
  45. Cipollina, Maria & Salvatici, Luca, 2006. "Reciprocal Trade Agreements in Gravity Models: A Meta-analysis," Working Papers 18877, TRADEAG - Agricultural Trade Agreements.
  46. Subrata Ghatak & Monica Ioana Pop Silaghi & Vince Daly, 2009. "Trade and migration flows between some CEE countries and the UK," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 18(1), pages 61-78.
  47. Faqin Lin, 2011. "The pro-trade impacts of immigrants: a meta-analysis of network effects," Journal of Chinese Economic and Foreign Trade Studies, Emerald Group Publishing, vol. 4(1), pages 17-27, February.
  48. David Law & Murat Genc & John Bryant, 2009. "Trade, diaspora and migration to New Zealand," Trade Working Papers 23005, East Asian Bureau of Economic Research.
  49. Sourafel Girma & Zhihao Yu, 2002. "The link between immigration and trade: Evidence from the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 115-130, March.
  50. Roger M. Harbord & Julian P.T. Higgins, 2008. "Meta-regression in Stata," Stata Journal, StataCorp LP, vol. 8(4), pages 493-519, December.
  51. Canavire Bacarreza, Gustavo Javier & Ehrlich, Laura, 2006. "The Impact of Migration on Foreign Trade: A Developing Country Approach," MPRA Paper 1090, University Library of Munich, Germany.
  52. T. D. Stanley, 2001. "Wheat from Chaff: Meta-analysis as Quantitative Literature Review," Journal of Economic Perspectives, American Economic Association, vol. 15(3), pages 131-150, Summer.
  53. Horácio Faustino & João Peixoto, 2009. "Immigration-Trade Links: The Impact of Recent Immigration on Portuguese Trade," Working Papers Department of Economics 2009/36, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  54. Roger White & Bedassa Tadesse, 2011. "International Migration and Economic Integration," Books, Edward Elgar Publishing, number 14318.
  55. S. Longhi & P. Nijkamp & J. Poot, 2010. "Joint impacts of immigration on wages and employment: review and meta-analysis," Journal of Geographical Systems, Springer, vol. 12(4), pages 355-387, December.
  56. R White, 2009. "Immigration, Trade and Product Differentiation," Economic Issues Journal Articles, Economic Issues, vol. 14(1), pages 43-64, March.
  57. Peter Nijkamp & Jacques Poot, 2002. "The Last Word on the Wage Curve?," Tinbergen Institute Discussion Papers 02-029/3, Tinbergen Institute, revised 13 Mar 2003.
  58. Stephen B. Jarrell & T. D. Stanley, 1990. "A Meta-Analysis of the Union-Nonunion Wage Gap," ILR Review, Cornell University, ILR School, vol. 44(1), pages 54-67, October.
  59. John F. Helliwell, 1997. "National Borders, Trade and Migration," NBER Working Papers 6027, National Bureau of Economic Research, Inc.
  60. Kugler, Maurice & Rapoport, Hillel, 2007. "International labor and capital flows: Complements or substitutes?," Economics Letters, Elsevier, vol. 94(2), pages 155-162, February.
  61. S. Piperakis, Andromachi, 2003. "Immigration, Trade Costs and Trade: Gravity Evidence for Greece," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 18, pages 750-762.
  62. Horácio Faustino & Nuno Leitão, 2008. "Using the Gravity Equation to Explain the Portuguese Immigration-trade Link," Working Papers Department of Economics 2008/12, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
  63. Jamie Partridge & Hartley Furtan, 2008. "Immigration Wave Effects on Canada's Trade Flows," Canadian Public Policy, University of Toronto Press, vol. 34(2), pages 193-214, June.
  64. Hatzigeorgiou Andreas, 2010. "Migration as Trade Facilitation: Assessing the Links between International Trade and Migration," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 10(1), pages 1-35, March.
  65. White, Roger & Tadesse, Bedassa, 2008. "Immigrants, cultural distance and U.S. state-level exports of cultural products," The North American Journal of Economics and Finance, Elsevier, vol. 19(3), pages 331-348, December.
  66. Chris Doucouliagos & T.D. Stanley, 2013. "Are All Economic Facts Greatly Exaggerated? Theory Competition And Selectivity," Journal of Economic Surveys, Wiley Blackwell, vol. 27(2), pages 316-339, 04.
  67. Ashok Deo Bardhan & Subhrajit Guhathakurta, 2004. "Global Linkages of Subnational Regions: Coastal Exports and International Networks," Contemporary Economic Policy, Western Economic Association International, vol. 22(2), pages 225-236, 04.
  68. Nuno Gonçalves & Ana Paula Africano, 2009. "The Immigration and Trade Link in the European Union Integration Process," FEP Working Papers 340, Universidade do Porto, Faculdade de Economia do Porto.
  69. Dunlevy, James A. & Hutchinson, William K., 1999. "The Impact of Immigration on American Import Trade in the Late Nineteenth and Early Twentieth Centuries," The Journal of Economic History, Cambridge University Press, vol. 59(04), pages 1043-1062, December.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nor:wpaper:2011020. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Norface Migration Administrator)

or (Thomas Cornelissen)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.