Migration and Trade

Peter Egger, Maximilian von Ehrlich and Douglas Nelson

No 3467, CESifo Working Paper Series from CESifo

Abstract: Theoretical and empirical research in economics suggests that bilateral migration triggers bilateral trade through a number of channels. This paper assesses the functional form of the impact of migration on trade flows in a quasi-experimental setting. We provide evidence that the relationship is not log-linear. In particular, at small levels of migration (stocks) the elasticity of trade to migration is quite high, and it declines to zero at about 4,000 immigrants. If migration stocks exceed such a level, the evidence suggests that trade will not increase anymore. This suggests that cross-country network and other effects flowing from migration materialize at relatively low levels of migration, but there appears to be satiation as immigrant numbers increase by much.

Keywords: migration; bilateral trade; quasi-randomized experiment; generalized propensity score estimation (search for similar items in EconPapers)
JEL-codes: C21 F14 F22 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

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Journal Article: Migration and Trade (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_3467

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