How Do Immigrants Promote Exports? Networks, Knowledge, Diversity

Gianluca Orefice, Hillel Rapoport () and Gianluca Santoni

No 9288, CESifo Working Paper Series from CESifo

Abstract: How does immigration affect export performance? To answer this question we propose a unified empirical framework allowing to disentangle various mechanisms such as the role of networks in reducing bilateral transaction costs as well as productivity shifts arising from migration-induced knowledge diffusion and increased workforce diversity. While we find evidence supporting all three channels (at both the intensive and the extensive margins of trade), our framework allows to gauge their relative importance. We then focus on diversity and find stronger results in sectors characterized by more complex production processes and more intense teamwork cooperation. This is consistent with theories linking the distribution of skills to the comparative advantage of nations. The results are robust to using a theoretically-grounded IV approach combining three variations on the shift share methodology.

Keywords: international trade; birthplace diversity; migration; productivity (search for similar items in EconPapers)
JEL-codes: F14 F16 F22 O47 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-int, nep-isf, nep-knm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: How Do Immigrants Promote Exports? Networks, Knowledge, Diversity (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_9288

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