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Migration as Trade Facilitation: Assessing the Links between International Trade and Migration

Hatzigeorgiou, Andreas (2008)
Department of Economics
Abstract
International trade costs still matter. As traditional barriers to trade
continue to diminish in importance, the question is how trade costs can be further lowered to promote international trade. Migrants can lower trade costs between their country of birth and their country of residence, particularly through the information channel. I use a gravity model of international trade to estimate the extent to which migrants facilitate trade between their country of birth and country of residence across a large set of developed and developing countries. The results suggest that both immigrants and emigrants are strongly related to higher levels of imports. I further show that migrants are especially good at facilitating trade in differentiated... (More)
International trade costs still matter. As traditional barriers to trade
continue to diminish in importance, the question is how trade costs can be further lowered to promote international trade. Migrants can lower trade costs between their country of birth and their country of residence, particularly through the information channel. I use a gravity model of international trade to estimate the extent to which migrants facilitate trade between their country of birth and country of residence across a large set of developed and developing countries. The results suggest that both immigrants and emigrants are strongly related to higher levels of imports. I further show that migrants are especially good at facilitating trade in differentiated goods, for which information costs can be considerable. (Less)
Please use this url to cite or link to this publication:
@misc{1644199,
  abstract     = {International trade costs still matter. As traditional barriers to trade
continue to diminish in importance, the question is how trade costs can be further lowered to promote international trade. Migrants can lower trade costs between their country of birth and their country of residence, particularly through the information channel. I use a gravity model of international trade to estimate the extent to which migrants facilitate trade between their country of birth and country of residence across a large set of developed and developing countries. The results suggest that both immigrants and emigrants are strongly related to higher levels of imports. I further show that migrants are especially good at facilitating trade in differentiated goods, for which information costs can be considerable.},
  author       = {Hatzigeorgiou, Andreas},
  keyword      = {trade,migration,Gravity Model,Trade Facilitation,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Migration as Trade Facilitation: Assessing the Links between International Trade and Migration},
  year         = {2008},
}