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Immigration and trade: the case study of Veneto region in Italy

Riccardo Fiorentini and Alina Verashchagina

No 261261, 2017 Sixth AIEAA Conference, June 15-16, Piacenza, Italy from Italian Association of Agricultural and Applied Economics (AIEAA)

Abstract: This paper investigates the relation between immigration and trade by focusing on Veneto region in Italy. The reference period is 2008-2015, interfering with the economic crisis, thus the results obtained can be time specific. The presence of immigrants in Veneto was constantly on the rise, also during the crisis, although at a slower pace compared to pre-crisis years. The question is which role could this play in ascertaining the stability, if not expansion, of trade relations between the region and the countries of immigrants' origin. The estimates of gravity model suggest a non-linear relationship between the number of immigrants and total exports from (imports to) the host-province to (from) the country of origin. The type of this relation moreover differs by sector of origin of trade. The effect on imports is mainly concentrated in manufacturing, whereas that on exports is more evenly distributed among several sectors. In particular, agriculture, mining, manufacturing, water supply and wastes managements are the ones which react positively by exporting more in response to increase in the number of immigrants. This could mean that further inflow of immigrants can potentially induce shifts in the structure of local economy of Veneto region which is highly dependent on international trade.

Keywords: International Development; International Relations/Trade (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int and nep-mig
Date: 2017-07-31
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DOI: 10.22004/ag.econ.261261

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