The impact of immigration on Portuguese Intra-Industry Trade

Nuno Carlos Leitão (nunocarlosleitao@gmail.com)
Additional contact information
Nuno Carlos Leitão: Polytechnic Institute of Santarém, & Member at CEFGAGE, University of Èvora, Portugal

European Economic Letters, 2013, vol. 2, issue 1, 7-11

Abstract: This paper investigates the relationship between intra-industry trade (IIT) and immigration flows using a gravity model for the period 2000-2010 between Portugal and European Union’s Member States (EU-27). The present study uses the methodology of Kandogan (2003) for separating IIT into its components horizontal (HIIT) and vertical intra-industry trade (VIIT).Using a panel data approach, our study find that immigration has a positive influence on Portuguese intra-industry trade. These results indicate that the immigration can reduce transaction costs between home and host country. We also consider in econometric model, the economic dimension which appears to exercise a positive effect on IIT. Our results confirm the hypothesis that there is a negative effect of transportation costs on trade.

Keywords: Gravity model; Horizontal and Vertical Intra-industry trade; Immigration; Panel Data (search for similar items in EconPapers)
JEL-codes: C20 C30 F12 L10 (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
http://eelet.org.uk/EEL2(1)7-11.pdf Full text (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:eueclt:0007

Access Statistics for this article

European Economic Letters is currently edited by Mike Taylor

More articles in European Economic Letters from European Economics Letters Group
Bibliographic data for series maintained by Mike taylor (aa@eelet.org.uk this e-mail address is bad, please contact repec@repec.org).