Analyzing the Immigration-Induced Changes in Product Diversity and Trade Patterns: The Case of the EU-Mediterranean-Eastern Europe Zone

Çağatay, Selim; Değirmen, Süleyman; Genç, Murat; Koska, Onur A.; Lücke, Bernd; Saygin, Perihan

doi:10.1007/978-3-319-04078-3_3

Cited by 1 publication

(3 citation statements)

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“…Especially Southern EU-countries (and in particular Italy, Spain, France and Portugal) have shown clear trade creation effects of people's flows via migrant networks and proximity [4]. In some studies, the observed effect is due to the network channel (Peridy, 2012; Artal-Tur et al ., 2012, 2014; Cağatay et al , 2014), and in other immigrant preferences for native country goods are the key factors driving the migration-trade link (Foad, 2010).…”

Section: Review Of the Literaturementioning

confidence: 99%

“…The evidence provided so far on the EU-MENA region focuses on bilateral exports and imports also taking proximity of migrants into account and emphasising the relevance of the territories distance (in terms of geography, culture, income per capita or institutions), as relevant for bigger trade creation effects (Artal-Tur et al ., 2012, 2014), and highlights the impact of migration on increasing product diversification measured by industry-level employment and number of enterprises (Cağatay et al , 2014). A recent literature has also taken into account the skill level of migrants and shown how high skilled migrants enhance the quality of exports in the frame of the network and preference effects (Giovannetti and Lanati, 2017; Giovannetti et al , 2019).…”

Section: Review Of the Literaturementioning

confidence: 99%

“…11. See Foad (2010), Peridy (2012), Artal-Tur et al (2012), Cagatay et al (2014), Giovannetti and Lanati (2017) and Giovannetti et al (2019).…”

Section: Notesmentioning

confidence: 99%

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Migration and comparative advantages: new evidence on the EU-MENA region

Ferragina

Iandolo

Taymaz

2021

IJM

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PurposeThis study aims to consider how migrants may act as channel of diffusion of knowledge which contributes to the dynamics of trade and comparative advantages of EU and MENA countries for the period 1990–2015.Design/methodology/approachAdopting an IV approach and a gravity framework to instrument for migration, the authors document how variations in stocks of migrants coming from (in) countries that are already competitive exporters of a given product impact on the probability that the destination (home) country starts to export competitively new products or succeed in exporting more intensively.FindingsControlling for potential confounding factors which can be correlated to knowledge flows and productivity shifts, the authors find trade-promoting effects via migration flows (mostly immigration) between the two areas, testing our hypotheses by different technology classes of products and different specifications.Originality/valueThe contribution of this work to the literature is threefold. First, by providing evidence on international knowledge diffusion induced by migration flows between MENA and EU regions, like no other work before, the authors document the effects of migration on trade and comparative advantages. Second, unlike standard literature on migration-trade link, the authors focus more on long-term structural changes in comparative advantages than on trade volumes. Third, we exploit how the effect of migration on margins of trade varies according to different types of goods, classified by technological level.

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