Since the early 1990s many empirical studies have been conducted on the impact of international migration on international trade, predominantly from the host country perspective. Because most studies have adopted broadly the same specification, namely a log-linear gravity model of export and import flows augmented with the logarithm of the stock of immigrants from specific source countries as an additional explanatory variable, the resulting elasticities are broadly comparable and yield a set of estimates that is well suited to meta-analysis. We therefore compile and analyze in this paper the distribution of immigration elasticities of imports and exports across 48 studies that yielded 300 observations. The results show that immigration complements rather than substitutes for trade flows between host and origin countries. Correcting for heterogeneity and publication bias, an increase in the number of immigrants by 10 percent may be expected to increase the volume of trade on average by about 1.5 percent. However, the impact is lower for trade in homogeneous goods. Over time, the growing stock of immigrants decreases the elasticities. The estimates are affected by the choice of some covariates, the nature of the data (cross-section or panel) and the estimation technique. Elasticities vary between countries in ways that cannot be fully explained by study characteristics; trade restrictions and immigration policies matter for the impact of immigration on trade. The migrant elasticity of imports is larger than that of exports in about half the countries considered, but the publication bias and heterogeneity-corrected elasticity is slightly larger for exports than for imports.

Abstract:International migration has become one of the most debated topics in many developed and developing countries. Host countries are concerned about the socioeconomic consequences of international migration, while sending countries-from a developing country's perspective-are concerned about the brain drain and loss of their younger population. This paper presents a concise literature review on existing theories of international migration, and long-run effects of international migration on Foreign Direct Investment (FDI). The empirical studies reviewed in this paper indicate a positive and statistically significant relationship between international migration and FDI.

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Migration has become a prominent research theme in geography and regional science and it has been approached from various methodological angles. Nonetheless, a common missing element in most migration studies is the lack of awareness of the overall network topology, which characterizes migration flows. Although gravity models focus on spatial interaction—in this case migration—between pairs of origins and destinations, they do not provide insights into the topology of a migration network. We employ network analysis to address such systemic research questions, in particular: How centralized or dispersed are migration flows and how does this structure evolve over time? And, how is migration activity clustered between specific countries, and if it is clustered, do such patterns change over time? Going a step further than exploratory network analysis, in this paper we estimate international migration models for OECD countries based on a dual approach: gravity models estimated using conventional econometric approaches such as panel data regressions and network-based regression techniques such as multivariate regression quadratic assignment procedures. The empirical results reveal not only the determinants of international migration among OECD countries, but also the value of blending network analysis with more conventional analytic methods.