Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/205558 
Year of Publication: 
2004
Series/Report no.: 
New Zealand Treasury Working Paper No. 04/18
Publisher: 
New Zealand Government, The Treasury, Wellington
Abstract: 
This paper examines the hypothesis that a greater stock of migrants in New Zealand from a particular country leads to more trade between that country and New Zealand. The literature suggests that migrants can stimulate trade by lowering transaction costs, and by bringing with them preferences for goods produced in their home country. We use panel data techniques within the framework of a standard gravity model of trade. Our sample includes an average of over 170 countries for the years 1981 to 2001. Previous studies of trade and migration have not dealt satisfactorily with problems of unobserved heterogeneity and selection bias. We address these problems using correlated random effects and selection models. Results suggest that larger migrant stocks are associated with higher trade flows.
Subjects: 
Migration
International Trade
Panel Data
New Zealand
JEL: 
F00
F10
F14
F22
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

Files in This Item:
File
Size
318.03 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.