Immigration Wave Effects on Canada's Trade Flows

Jamie Partridge and Hartley Furtan

Canadian Public Policy, 2008, vol. 34, issue 2, 193-214

Abstract: We utilize an enhanced gravity model to estimate the effect of lagged immigration waves on Canadian imports and exports by province. Empirically, this model was tested using Canadian data on import and export flows to the top 40 countries of origin for Canadian immigrants based upon the composition of the most recent immigrant wave. The results are consistent with previous studies, where immigrants increased both import and export trade flows. By adding the provincial immigrant wave variable, it was also found that new immigrants affect imports almost immediately, whereas for exports, the immigrant effect is not significant for at least five years and may take as long as 20 years to reach full impact.

Date: 2008
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