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The pro-export effect of subnational migration networks: new evidence from Spanish provinces

Anna D’Ambrosio () and Sandro Montresor ()
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Anna D’Ambrosio: Polytechnic of Turin

Review of World Economics (Weltwirtschaftliches Archiv), 2022, vol. 158, issue 1, No 3, 53-107

Abstract: Abstract The paper investigates the effect that subnational networks of immigrants and emigrants had on exports from Spanish provinces (NUTS3) over the period of 2007–2016 by integrating state-of-the-art advances in the gravity model literature. In particular, it allows for heterogeneity in provincial export capacity, which significantly reduces pro-export effects, and select the Poisson Pseudo-Maximum Likelihood as the most suitable estimator according to diagnostic tests. When both immigration and emigration are instrumented, the pro-export effect of immigrants found by previous studies vanishes and that of emigrants, instead, appears appreciable. The results obtained suggest that over the period that encompasses the double-deep crisis, immigrants did not show significant information and enforcement effects in the considered context, while the effects of emigrant demand for home-country goods may have been important. The prevalence of emigrant over immigrant effects appears attributable to a change in the composition of the migration stocks over the considered period of crisis.

Keywords: Gravity model; Migration; Subnational units; Poisson PML; Gamma PML; Fixed effects (search for similar items in EconPapers)
JEL-codes: C52 F10 F14 F22 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (1)

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DOI: 10.1007/s10290-021-00423-4

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