Migration's Contribution to Trade: State-Level Evidence on the Importance of Destination Geographic Proximity

Michael Gove

International Economic Journal, 2017, vol. 31, issue 2, 224-244

Abstract: I empirically analyze the importance of differing levels of geographic proximity, providing the first results of the migrant-trade nexus at the state level for both places of destination and origin. Relying on a unique dataset allowing the mapping of Mexican-born migrants' US states of residence to Mexican states of origin, I ensure a precise measurement of migrant networks and other potential determinants of international trade, including the distance and mass variables fundamental to any gravity model. Furthermore, I unmask distinct levels of geographic proximity that a single migration estimate disguises, estimating statistically significant elasticities of exports to in-state, and neighboring-state migration. These figures are not only qualitatitvely but also quantitatively important, corresponding to partial contributions of $1984 (in-state) and $538 (neighboring-state) to annual exports between respective US and Mexican states associated with each average additional migrant.

Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:taf:intecj:v:31:y:2017:i:2:p:224-244

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DOI: 10.1080/10168737.2017.1316296

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