The Migration-Trade Nexus in the Presence of Vertical and Horizontal Product Differentiation

Antonella Bellino () and Giuseppe Celi
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Antonella Bellino: University of Foggia - Department of Economics, Postal: Via A.Gramsci 89/91, 71121 - Foggia (FG), ITALY

No 137, CELPE Discussion Papers from CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy

Abstract: This paper provides an exploration of the migration-trade nexus in the case of Italy over the period 2005-2010 by crossing the two dimensions of migration (immigration and emigration) and the two dimensions of intra-industry trade (vertical and horizontal). This empirical strategy turns out to be useful to improve interpretation of econometric results. In general, we find that both immigration and emigration are positively and significantly related to intra-industry trade. However, the magnitude and the statistical significance of migration’s impact on trade vary, depending on the type of trade flows considered (vertical or horizontal), the direction of migration (immigration or emigration) and the partner countries considered (OECD or non-OECD). In particular, we find that immigrants from non-OECD countries have a positive and significant impact both on “variety trade” and “quality trade”, immigrants from OECD countries affect significantly only “variety trade” and emigrants to non-OECD enhance only “variety trade” too. These results are largely consistent with predictions deriving from theoretical models of IIT and from the literature on migration-trade nexus.

Keywords: International migration; Intra-industry trade; Economic integration; Human capital (search for similar items in EconPapers)
JEL-codes: F12 F15 F22 J24 (search for similar items in EconPapers)
Pages: 49 pages
Date: 2016-06-23
New Economics Papers: this item is included in nep-int and nep-mig
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