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The Immigration and Trade Link in the European Union Integration Process

Author

Listed:
  • Nuno Gonçalves

    () (Faculdade de Economia, Universidade do Porto)

  • Ana Paula Africano

    () (CEF.UP and Faculdade de Economia, Universidade do Porto)

Abstract

The aim of this paper is to analyse the link between immigration and trade among EU countries, particularly, in the context of the 2004 enlargement. The study tests whether the increase in immigrant stock from New Member States has any impact on the exports from the EU-15 to those markets or not. To that end the study applies an extended gravity model of international trade to panel data for three countries – Germany, Denmark and Portugal. The results show that increasing immigration from both New Member States and EU15 countries has a positive impact on the exports of both Portugal and Denmark. The results also suggest that less restrictive immigration policies have a positive impact on exports, and contribute to the normalization of exports of these countries to New Member States. Finally, these results do not hold in the case of Germany.

Suggested Citation

  • 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.
  • Handle: RePEc:por:fepwps:340
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    File URL: http://www.fep.up.pt/investigacao/workingpapers/09.11.02_wp340.pdf
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    Citations

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    Cited by:

    1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters,in: Migration Impact Assessment, chapter 9, pages 301-337 Edward Elgar Publishing.
    2. Horácio Faustino & Isabel Proença, 2011. "Effects of Immigration on Intra-Industry Trade: A logit analysis," Working Papers Department of Economics 2011/19, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    More about this item

    Keywords

    International trade; immigration; European Union; economic integration; gravity model;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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