Migration Flows and Intra-Industry Trade Adjustments
Jose Vicente Blanes and
Joan A. Martín-Montaner ()
Additional contact information Joan A. Martín-Montaner: Departmento de Economica, Universitat Jaume I
Abstract:
In this paper we analyse the link between trade and migration. Focusing in the experience of Spain, we relate a marginal index of intra-industry trade with the stock of foreign workers - classified according to their country of origin and their situation in the Spanish labour market. We focus on the possibility that existing networks of foreign workers and their connections with their countries of origin could stimulate trade with the host country. Our results show a significant impact of the number of immigrants with work permits on intra-industry trade adjustment. However, this impact being positive or negative depends on whether foreign workers are employees or self-employed, the duration of the work permits and the type of job they occupy.