Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/69357 
Authors: 
Year of Publication: 
2012
Series/Report no.: 
IZA Discussion Papers No. 7073
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper highlights that the immigrants' effect on trade is not identical across all types of immigrants but it varies with the immigrants' occupation. Using a sample of 63 U.S. trading partners which are also big immigrant sending countries over the years 1991-2000, this paper finds that the immigrant trade elasticity for the no occupation group is similar in magnitude to the immigrant effect on trade estimated in the literature. However, this does not capture the full extent of the effect of immigrant network on trade. The share of professional immigrants in comparison to immigrants with no occupation significantly increases the trade elasticity for Rauch's referenced price and differentiated commodities and this effect is strongest for the differentiated goods. This paper establishes that immigrants' occupation is an important indicator of the quality and effectiveness of immigrants' network in trade creation with the home country.
Subjects: 
immigrant occupation
immigrant networks
bilateral trade
U.S.
JEL: 
F22
F11
J10
J61
Document Type: 
Working Paper

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