Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62486
Authors: 
Bratti, Massimiliano
De Benedictis, Luca
Santoni, Gianluca
Year of Publication: 
2012
Series/Report no.: 
Discussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6628
Abstract: 
In this paper we investigate the causal effect of immigration on trade flows, using Italian panel data covering very small geographical units (NUTS-3). Exploiting the very favorable setup offered by Italy's features - the very high number of countries of origin of immigrants ('super-diversity'), the high heterogeneity of social and economic characteristics of Italian provinces coupled with the absence of cultural (e.g. language) or historical (colonial ties) attractors for immigration -, controlling for a wide set of fixed effects, and dealing with the possible distortions generated by the inappropriate choice of the areal unit, we find a positive association between immigrants' stocks and both export and import flows, in line with the past literature. However, using instrumental variables based on migration enclaves, we show that immigrants have a positive and significant effect on imports only.
Subjects: 
migration
trade
gravity model
super-diversity
MAUP
transplanted-home bias effect
business and social networks effects
JEL: 
F10
F14
F22
R10
Document Type: 
Working Paper

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