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The Impacts of the Turkish Emigrants on Turkish Exports and Imports in Europe

  • Insel, Aysu
  • Sungur Cakmak, Nesrin

This paper examines the link between migration and trade, focusing on Turkey as a “sending” country and the selected trading partners, Austria, Belgium, Denmark, Finland, France, Germany, Holland, Italy, Norway, Spain, Sweden, Switzerland and the UK, as the “receiving” countries in Europe. The research question is: “Do Turkish emigrants have positive impacts on the exports and imports of Turkey through preference and/or network channels.” The investigation methodology involves the fixed effect panel data analysis, and the estimation technique is the Least Squares under the assumption of the presence of cross section heteroskedasticity and the robust standard errors. This paper includes the 1980-2007 period, as well as two sub-periods, 1980-1995 and 1996-2007, in order to test the impact of the 1995 December Customs Union agreement between Turkey and EU countries. The trade function has been determined by the stock of Turkish population, per capita real income, real exchange rate, and the lagged dependent variable. It has been found that Turkish emigrants have significantly positive effect on trade mainly after the Custom Union Agreement, through the preference and network channels.

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File URL: http://mpra.ub.uni-muenchen.de/22100/3/MPRA_paper_22100.pdf
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 22100.

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Date of creation: 14 Apr 2010
Date of revision: 30 Apr 2010
Handle: RePEc:pra:mprapa:22100
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  1. Roger White, 2007. "Immigrant-trade links, transplanted home bias and network effects," Applied Economics, Taylor & Francis Journals, vol. 39(7), pages 839-852.
  2. David M. Gould, 1991. "Immigrant links to the home country: empirical implications for U.S. and Canadian bilateral trade flows," Research Paper 9102, Federal Reserve Bank of Dallas.
  3. 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.
  4. David Law & Murat Genc & John Bryant, 2009. "Trade, diaspora and migration to New Zealand," Trade Working Papers 23005, East Asian Bureau of Economic Research.
  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.
  6. John F. Helliwell, 1997. "National Borders, Trade and Migration," NBER Working Papers 6027, National Bureau of Economic Research, Inc.
  7. José V. Blanes & Joan A. Martín-Montaner, 2006. "Migration Flows and Intra-Industry Trade Adjustments," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 142(3), pages 567-584, October.
  8. 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.
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