Migration and Trade Ows: New Evidence from Spanish Regions

Anna D'Ambrosio and Sandro Montresor ()

Department of Economics and Statistics Cognetti de Martiis. Working Papers from University of Turin

Abstract: We analyze migrants' pro-trade e ects through a theory-consistent gravity model augmented with migration variables - both immigration and emigration. We take subnational units, i.e. Spanish NUTS3 regions and allow for subnationally heterogeneous multilateral resistance terms, implying diversified exporting capacity of provinces. We implement an econometric strategy based on Head and Mayer (2014), which leads us to selecting the Gamma PML estimator. Comparing the Gamma with OLS estimator we highlight some shortcomings of previous literature. In particular, language commonality is found to magnify the pro-trade effect of immigrants, differently from previous literature; both emigrants' and immigrants' networks are found to exert a positive and significant pro-trade effect, but in different ways: immigrants affect trade through their local networks, whereas emigrants affect trade through their national networks. security programs.

Pages: pages 30
Date: 2017-06
New Economics Papers: this item is included in nep-int and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:uto:dipeco:201724

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