The Impact of Migration on Foreing Trade in Bolivia

Gustavo Javier Canavire Bacarreza and Laura Ehrlich
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Gustavo Javier Canavire Bacarreza: IISEC Universidad Católica Boliviana "San Pablo"
Laura Ehrlich: Independent
Authors registered in the RePEc Author Service: Gustavo Javier Canavire-Bacarreza

Revista Latinoamericana de Desarrollo Economico, 2006, issue 6, 125-146

Abstract: While the casual relationship between migration and trade has not been studied thoroughly, estimation results of empirical studies suggest that important aspects determinig trade volumes can be missed if additional factors, including migration, are not considered. The current paper aims at testing the impact of migration on foreing trade in a small economy like Bolivia. We test the impact of both, immigration and emigration on exports and imports and also on intra-industry trade. We use gravity model approach to this end. We control for the economic size and geographical location of trade partners, and for changes in terms of trade. Our results show relatilevy similar impact of both inmigration on foreing trade, confirming positive significant effect of immigration on exports and imports also in Bolivia, even when the migration flows in Bolivia are not as high as in the case of most countries analyzed previously. The imports elasticities are slightly higher; both elasticities are closer to the lower margin of the range based on previous studies. We can conclude positive effect of emigration being higher than that of immigration. Our estimation results on Bolivia show that migration has effect on foreing trade, even if the share of migrants in the population is low.

Keywords: Bolivia; migration; economy (search for similar items in EconPapers)
JEL-codes: Z00 (search for similar items in EconPapers)
Date: 2006
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