Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/245469 
Year of Publication: 
2021
Series/Report no.: 
CESifo Working Paper No. 9288
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
How does immigration affect export performance? To answer this question we propose a unified empirical framework allowing to disentangle various mechanisms such as the role of networks in reducing bilateral transaction costs as well as productivity shifts arising from migration-induced knowledge diffusion and increased workforce diversity. While we find evidence supporting all three channels (at both the intensive and the extensive margins of trade), our framework allows to gauge their relative importance. We then focus on diversity and find stronger results in sectors characterized by more complex production processes and more intense teamwork cooperation. This is consistent with theories linking the distribution of skills to the comparative advantage of nations. The results are robust to using a theoretically-grounded IV approach combining three variations on the shift share methodology.
Subjects: 
international trade
birthplace diversity
migration
productivity
JEL: 
F14
F16
F22
O47
Document Type: 
Working Paper
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