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Migration, trade and investment

Author

Listed:
  • Ben Dolman

    (Productivity Commission)

Abstract

By lowering the cost of trade between the country of residence and the country of birth, migrants appear to reduce trade with other countries, so that the overall effect on aggregate trade is small. The effects of migrants on foreign direct investment appear to be different. Bilateral investment patterns show that migrants increase investment between their country of residence and country of birth, but there is no strong evidence that this is accompanied by a reduction of the stock of investment in other countries The views expressed in this paper are those of the staff involved and do not necessarily reflect those of the Productivity Commission.

Suggested Citation

  • Ben Dolman, 2008. "Migration, trade and investment," Staff Working Papers 0803, Productivity Commission, Government of Australia.
    • Handle: RePEc:ris:prodsw:0803
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    File URL: http://www.pc.gov.au/research/staffworkingpaper/migration
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    File URL: http://www.pc.gov.au/research/staffworkingpaper/migration
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    Citations

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    Cited by:

    1. Egger, Peter H. & Ehrlich, Maximilian v. & Nelson, Douglas R., 2020. "The trade effects of skilled versus unskilled migration," Journal of Comparative Economics, Elsevier, vol. 48(2), pages 448-464.
    2. David Amirault & Daniel de Munnik & Sarah Miller, 2016. "What drags and drives mobility? Explaining Canada's aggregate migration patterns," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 49(3), pages 1035-1056, August.
    3. Paul Comolli, 2018. "Migration, FDI, and Welfare," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(2), pages 179-188, June.
    4. Rezart Hoxhaj & Léa Marchal & Adnan Seric, 2015. "FDI and Migration of Skilled Workers Towards Developing Countries: Firm-Level Evidence from Sub-Saharan Africa," Post-Print hal-01533556, HAL.
    5. Roger White, 2010. "Migration and International Trade," Books, Edward Elgar Publishing, number 13670.
    6. Baier, Scott L. & Bergstrand, Jeffrey H., 2009. "Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation," Journal of International Economics, Elsevier, vol. 77(1), pages 77-85, February.
    7. Dilip Ratha & Sanket Mohapatra & Caglar Ozden & Sonia Plaza & William Shaw & Abebe Shimeles, 2011. "Leveraging Migration for Africa : Remittances, Skills, and Investments [Optimisation du phénomène migratoire pour l’Afrique : Envois de fonds, compétences et investissements]," World Bank Publications - Books, The World Bank Group, number 2300, December.
    8. Alfano, Vincenzo & Gaeta, Giuseppe Lucio & Petraglia, Carmelo & Vecchione, Gaetano, 2022. "Back to the future: the long-term effects of skilled migration on tech-intensive trade," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 25-34.
    9. Roger White & Bedassa Tadesse, 2011. "International Migration and Economic Integration," Books, Edward Elgar Publishing, number 14318.
    10. Sonia Plaza, 2013. "Diaspora resources and policies," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 27, pages 505-529, Edward Elgar Publishing.

    More about this item

    Keywords

    Economic modelling; foreign investments; direct investment; migration; bilateral investment patterns;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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