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Title: Do Immigrants Promote Trade with Third Party Countries? On the Role of Geographic and Linguistic Proximity

Citation Type: Miscellaneous

Publication Year: 2018

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Abstract: Immigrants have been found to promote trade with their countries of origin. In this study, we show that immigrants can also affect trade with other (third party) countries, and investigate which immigrants do that as well as the likely channels. We provide evidence for inter-ethnic spillover effect due to immigrant language skills by showing that immigrants who speak the same non-native language as residents of trading partner country increase both exports to and imports from it, even if they reside in geographically distant countries with a different official language. Results suggest common native language has an additional export promotion spillover effect over and above spoken language, suggesting a special role of ethnic ties. Immigrants from countries geographically proximate to trading partner country are found to promote exports but not imports. The magnitude of the trade promotion effect of the most trade-relevant third party country immigrant groups is comparable to the trade promotion effect of immigrants from trading partner country.

Url: https://olegfirsin.com/wp-content/uploads/2018/09/OFirsin_Immigration_Trade_August2018.pdf

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Authors: Firsin, Oleg

Publisher: Cornell University

Data Collections: IPUMS USA

Topics: Labor Force and Occupational Structure, Migration and Immigration, Other

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