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Immigration and International Prices

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  • Marios Zachariadis

Abstract

This paper considers the relation between immigration and prices for a large number of cities across the world over the period from 1990 to 2006. Aggregate immigration ratios are shown to have a negative impact on international relative prices. The evidence is consistent with demand-side and supply-side considerations both being relevant for the price-reducing effect of immigration, with the latter offering a more likely explanation at annual frequencies during this period. Our findings regarding the inverse relation of immigration and prices and the channels via which this operates across international cities, are broadly consistent wih Lach (2007) and Cortes (2008) who investigate the same relation within Israel and for the US respectively.

Suggested Citation

  • Marios Zachariadis, 2010. "Immigration and International Prices," University of Cyprus Working Papers in Economics 03-2010, University of Cyprus Department of Economics.
    • Handle: RePEc:ucy:cypeua:03-2010
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    14. Stahl, Dale O, II, 1989. "Oligopolistic Pricing with Sequential Consumer Search," American Economic Review, American Economic Association, vol. 79(4), pages 700-712, September.
    15. Zachariadis, Marios, 2011. "Immigration and international prices: An initial assessment," Economics Letters, Elsevier, vol. 110(2), pages 83-85, February.
    16. Philippe Andrade & Marios Zachariadis, 2010. "Trends in International Prices," University of Cyprus Working Papers in Economics 02-2010, University of Cyprus Department of Economics.
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    Cited by:

    1. Andrade, Philippe & Zachariadis, Marios, 2016. "Global versus local shocks in micro price dynamics," Journal of International Economics, Elsevier, vol. 98(C), pages 78-92.
    2. Sanchis-Guarner, Rosa, 2023. "Decomposing the impact of immigration on house prices," Regional Science and Urban Economics, Elsevier, vol. 100(C).
    3. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    4. Effrosyni Adamopoulou & Ezgi Kaya, 2020. "Not just a work permit: EU citizenship and the consumption behaviour of documented and undocumented immigrants," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 53(4), pages 1552-1598, November.
    5. World Bank Group, 2015. "Malaysia Economic Monitor, December 2015," World Bank Publications - Reports 23565, The World Bank Group.
    6. Alam, Ashraful & Dutta, Indranil & Haque, M. Emranul & Nogales, Ricardo, 2022. "Impact of Rohingya refugees on food prices in Bangladesh: Evidence from a natural experiment," World Development, Elsevier, vol. 154(C).
    7. M. A. Anderson & M. H. Davies & S. L. S. Smith, 2016. "Ethnic Networks and Price Dispersion," Review of International Economics, Wiley Blackwell, vol. 24(3), pages 514-535, August.
    8. Binnur Balkan & Semih Tumen, 2016. "Immigration and prices: quasi-experimental evidence from Syrian refugees in Turkey," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(3), pages 657-686, July.
    9. Karin Mayr, 2012. "Occupation-specific immigration quotas in political equilibrium," Vienna Economics Papers 1207, University of Vienna, Department of Economics.
    10. Inkoo Lee & Sang Soo Park & Marios Zachariadis, 2023. "Non‐linearities in international prices," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 56(3), pages 1032-1062, August.
    11. Pandey, Manish & Ray Chaudhuri, Amrita, 2017. "Immigration-induced effects of changes in size and skill distribution of the labor force on wages in the U.S," Journal of Macroeconomics, Elsevier, vol. 52(C), pages 118-134.

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    More about this item

    Keywords

    Immigration; prices; inflation; international price differences;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F4 - International Economics - - Macroeconomic Aspects of International Trade and Finance
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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