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Bridging barriers - Pro-trade effects of immigration on Swedish exports

Wijk Tegenrot, Axel LU (2016) NEKN01 20161
Department of Economics
Abstract
This study examines the pro-trade effects of immigration on Swedish exports. Beginning in the theory that immigrants through their unique set of networks and knowledge can facilitate international trade and bridge informational barriers to trade, this study will estimate the immigration effect on exports for Sweden. Unlike studies in similar settings, this paper applies a Pseudo poisson maximum likelihood estimation, which is preferential to the log-linear OLS, and have not before been applied in studies for Sweden. Further, this paper tests if institutional variables work as a good proxy for estimating informational barriers. The results show that immigration indeed have significant positive effects on Swedish exports; a ten percent... (More)
This study examines the pro-trade effects of immigration on Swedish exports. Beginning in the theory that immigrants through their unique set of networks and knowledge can facilitate international trade and bridge informational barriers to trade, this study will estimate the immigration effect on exports for Sweden. Unlike studies in similar settings, this paper applies a Pseudo poisson maximum likelihood estimation, which is preferential to the log-linear OLS, and have not before been applied in studies for Sweden. Further, this paper tests if institutional variables work as a good proxy for estimating informational barriers. The results show that immigration indeed have significant positive effects on Swedish exports; a ten percent increase in immigration results in 1,4 to 3,7 percent increase in exports. However, the model fails to capture and estimate the theoretical mechanisms behind immigrants’ network and information effect on Swedish exports. (Less)
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author
Wijk Tegenrot, Axel LU
supervisor
organization
course
NEKN01 20161
year
type
H1 - Master's Degree (One Year)
subject
keywords
Trade, Immigration, International economics, Trade barriers
language
English
id
8871774
date added to LUP
2016-04-29 09:03:50
date last changed
2016-04-29 09:03:50
@misc{8871774,
  abstract     = {This study examines the pro-trade effects of immigration on Swedish exports. Beginning in the theory that immigrants through their unique set of networks and knowledge can facilitate international trade and bridge informational barriers to trade, this study will estimate the immigration effect on exports for Sweden. Unlike studies in similar settings, this paper applies a Pseudo poisson maximum likelihood estimation, which is preferential to the log-linear OLS, and have not before been applied in studies for Sweden. Further, this paper tests if institutional variables work as a good proxy for estimating informational barriers. The results show that immigration indeed have significant positive effects on Swedish exports; a ten percent increase in immigration results in 1,4 to 3,7 percent increase in exports. However, the model fails to capture and estimate the theoretical mechanisms behind immigrants’ network and information effect on Swedish exports.},
  author       = {Wijk Tegenrot, Axel},
  keyword      = {Trade,Immigration,International economics,Trade barriers},
  language     = {eng},
  note         = {Student Paper},
  title        = {Bridging barriers - Pro-trade effects of immigration on Swedish exports},
  year         = {2016},
}