Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/46357 
Year of Publication: 
2011
Series/Report no.: 
CESifo Working Paper No. 3467
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
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.
Subjects: 
migration
bilateral trade
quasi-randomized experiment
generalized propensity
score estimation
JEL: 
C21
F14
F22
Document Type: 
Working Paper
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