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Migration Flows and Intra-Industry Trade Adjustments

  • José V. Blanes

    ()

    (Department of Economics, Universidad Pablo de Olavide)

  • Joan A. Martín-Montaner

    ()

    (Departmento de Economica, Universitat Jaume I)

In this paper we analyse the link between trade and migration. Focusing in the experience of Spain, we relate a marginal index of intra-industry trade with the stock of foreign workers - classified according to their country of origin and their situation in the Spanish labour market. We focus on the possibility that existing networks of foreign workers and their connections with their countries of origin could stimulate trade with the host country. Our results show a significant impact of the number of immigrants with work permits on intra-industry trade adjustment. However, this impact being positive or negative depends on whether foreign workers are employees or self-employed, the duration of the work permits and the type of job they occupy.

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File URL: http://www.upo.es/serv/bib/wps/econ0604.pdf
File Function: First version, 2006
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Paper provided by Universidad Pablo de Olavide, Department of Economics in its series Working Papers with number 06.04.

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Length: 24 pages
Date of creation: Mar 2006
Date of revision:
Handle: RePEc:pab:wpaper:06.04
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  1. Greenaway, David & Milner, Chris & Elliott, Robert J R, 1999. " UK Intra-industry Trade with the EU North and South," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(3), pages 365-84, August.
  2. Marius Brülhart, 1994. "Marginal intra-industry trade: Measurement and relevance for the pattern of industrial adjustment," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 130(3), pages 600-613, September.
  3. 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.
  4. Balassa, Bela, 1986. "The Determinants of Intra-industry Specialization in United States Trade," Oxford Economic Papers, Oxford University Press, vol. 38(2), pages 220-33, July.
  5. Sourafel Girma & Zhihao Yu, 2002. "The link between immigration and trade: Evidence from the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 138(1), pages 115-130, March.
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