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The effect of immigrants on the extensive and intensive margins of trade

Kichun Kang

Applied Economics Letters, 2018, vol. 25, issue 2, 92-95

Abstract: This study examines the impact of immigrants on the extensive and intensive margins of South Korean exports. Since trade data contain excessive zero trade flows, we adopt recently suggested Poisson and Gamma pseudo maximum likelihoods. ​​​Our finding shows that immigrant stock in South Korea has significant effect on both the extensive and intensive margins of South Korean exports. Immigrants’ network seems to decrease variable as well as fixed costs of trade.

Date: 2018
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