Migration and export performance: the role of diaspora remittances

Luís Miguel Pacheco, Isabel Maldonado and Carla Azevedo Lobo

International Journal of Trade and Global Markets, 2024, vol. 19, issue 2, 174-192

Abstract: Migration and international trade represent two fundamental and interconnected aspects of globalisation. This paper studies the impact of migration on bilateral trade, using data for remittances as a proxy for migrants in an augmented panel data gravity model framework. Using data for Portuguese bilateral trade with 187 countries for the period 2008-2017, and controlling for other determinants of trade through a standard gravity model, we find that there is a significant impact of remittances on bilateral trade both in terms of exports and imports, particularly regarding some specific types of goods. The evidence of a significant relationship between migration and trade has important implications since it can provide policymakers with an alternative option to promote trade and internationalisation beyond conventional trade policy.

Keywords: migration; internationalisation; gravity model; remittances; diaspora. (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijtrgm:v:19:y:2024:i:2:p:174-192

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