Spain trade in view of some migratory and economic considerations

Abstract

The importance of trade and migration flows has become pivotal in times of frequent global crises. This paper analyzes how migration and other vital economic factors explain international trade. The methodology that is subject of our study consists of a panel data analysis of trade processes measured by export from Spain and import to Spain for 90 countries and covers the period 1998-2015 with respect to immigration and other economic variables. The results show that immigration influences international trade for both sending and receiving countries. On a more detailed level, an increase of the number of immigrants [in Spain] by one per cent results in a growth of Export [from that country] by 0.3 per cent and to a rise of Import [to that country] by 0.303 per cent, respectively. Similarly, the results confirm the measure of the "number of annual hours worked" as an excellent indicator to depict the role of employment in the most recent economic changes and developments [outlook]. We also find an indirect evidence that labour productivity is relevant for international trade what supports the existence of the "Say's Law" in terms of Immigration processes. Besides, our paper shows how labour-intensive countries' environment favors export [from Spain], and by contrast, capital-intensive countries' environment facilitates import [to Spain]. Finally, the results add empirical evidence showing how the lack of technological infrastructure plays the role of a non-tariff trade barrier, whereas the membership in an integrated economic area such as EU reduces trade costs, providing incentives for exporters and importers of any particular country.

Migration Flows in Spain. A Push-pull Factors View

“…The immigration drop was as low as -2.2% and was just limited to the years 2012 to 2016 (Figures 1 and 3). Since 2017 Spain has recovered positive migratory balances, in a process that is undoubtedly linked to economic recovery, especially job creation (Ojeda-Gonzalez et al, 2018). In relation to this, Figure 4 shows the migratory balance broken down by regions of Spain in 2008, 2013 and 2018.…”

“…(Bonfanti, 2015). In any case, numerous studies have been carried out using the push-pull approach, which takes into account the importance of socio-economic factors as determining factors in migratory flows (Jennissen, 2004;Miranda-Martel et al, 2017;Ojeda-Gonzalez et al, 2018).…”

Integration and Productivity of Labor Factor in Europe. Perspective from Nationality and the Attainment Level

“…Thus, an increase in the labour factor in other countries also leads to an increase in local labour participation and, subsequently, in the level of wealth, both in origin and destination countries associated with the foreign labour force (Miranda-Martel et al, 2018;Ojeda-Gonzalez et al, 2018b;Garcia-Rodriguez et al). In origin countries, the benefits of migration comprise reduced unemployment and social spending, incomes from remittances and foreign direct investment.…”

“…And what happens to productivity during the European integration process when assessed from the labour factor standpoint? Accumulation of labour and attractions of workers require well-functioning capital markets, as well as product and labour markets (Ojeda-Gonzalez et al, 2018b;Miranda-Martel et al, 2017;Gordon, 2016). Moreover, the current low levels of productivity per worker, employment and labour force participation result in an increased ageing of the population in European countries, leading to a decline in the output per capita over the long term (Klugea et al, 2019;Conesa & Kehoe, 2018;OECD, 2015) whilst also representing a step backwards in terms of the convergence in the European Union.…”