Publication
Immigration and trade
| Summary: | This paper investigates the relationship between intra-industry trade (IIT), horizontal IIT, vertical IIT (VIIT) and immigration flows using a gravity model for the period 1995-2008 amongst Portugal and European Union’s Member States (EU-27). Using a panel data approach, the results show a positive correlation between immigration and IIT. These outcomes indicate that the immigration can reduce transaction costs between home and host country. We also consider the economic dimension which appears to exercise a positive effect on trade. Our research confirms the hypothesis that there is a negative effect of transportation costs on trade. |
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| Main Authors: | Leitão, Nuno Carlos |
| Other Authors: | Dima, Bogdan; Dima, Stefana |
| Subject: | Intra-industry trade Horizontal intra-industry trade Vertical intra-industry trade Immigration Panel Data |
| Year: | 2012 |
| Country: | Portugal |
| Document type: | article |
| Access type: | restricted access |
| Associated institution: | Instituto Politécnico de Santarém |
| Language: | English |
| Origin: | Repositório Científico do Instituto Politécnico de Santarém |
| Summary: | This paper investigates the relationship between intra-industry trade (IIT), horizontal IIT, vertical IIT (VIIT) and immigration flows using a gravity model for the period 1995-2008 amongst Portugal and European Union’s Member States (EU-27). Using a panel data approach, the results show a positive correlation between immigration and IIT. These outcomes indicate that the immigration can reduce transaction costs between home and host country. We also consider the economic dimension which appears to exercise a positive effect on trade. Our research confirms the hypothesis that there is a negative effect of transportation costs on trade. |
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