2009
DOI: 10.1016/j.econlet.2009.04.017
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The pro-trade effect of the brain drain: Sorting out confounding factors

Abstract: We sort out confounding factors in the empirical link between bilateral migration and trade. Using newly available panel data on developing countries' diaspora to rich OECD nations in a theory-grounded gravity model, we uncover a robust, causal pro-trade effect.Moreover, we do not find evidence in favor of strong differences across education groups.

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Cited by 71 publications
(61 citation statements)
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“…When the three educational groups are included (column 5), there is a significant impact only for primary and tertiary educated migrants, the latter being more than three times the former, in line with Felbermayr and Jung (2009) (who use a different database for years 2000 and 2010), despite they obtained a significant but negative impact of secondaryeducated migrants on trade.…”
Section: Rtamentioning
confidence: 78%
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“…When the three educational groups are included (column 5), there is a significant impact only for primary and tertiary educated migrants, the latter being more than three times the former, in line with Felbermayr and Jung (2009) (who use a different database for years 2000 and 2010), despite they obtained a significant but negative impact of secondaryeducated migrants on trade.…”
Section: Rtamentioning
confidence: 78%
“…This possibility is explored, for instance, in Felbermayr and Jung (2009), who exploit the panel nature of their data to check it. Briant et al (2009), Peri and Requena (2010) and Bratti et al (2011) use historical immigrant enclaves (i.e.…”
Section: Econometric Specification and Datamentioning
confidence: 99%
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“…Most papers analyze a single country and its multiple trading partners (such as Head and Ries, 1998;Dunlevy and Hutchinson, 2001;Girma and Yu, 2002;Blanes-Cristóbal, 2003;Hatzigeorgiou, 2010). The main exceptions are Felbermayr and Toubal (2008), who perform cross-section analysis, and Felbermayr and Jung (2009), who use panel data. Other papers focus on the trade and migration links between province/regions of a country and its trading partners (Wagner et al, 2002;Co et al, 2004;Bardhan and Guhathakurta, 2005;Herander and Saavedra, 2005;Dunlevy, 2006;Bandyopadhyay et al, 2008;Peri and Requena-Silvente, 2010).…”
mentioning
confidence: 99%
“…My estimates are those corresponding to the preferred base sample. Other articles' estimates are the following: the OLS fixed effects result for Aleksynska and Peri (2011), the benchmark OLS result for APR, the differenced result for Felbermayr and Jung (2009), the Tobit result for HS (2005), and the full sample result for White (2007). Figures for column 3 are generated according to the reported elasticities, multiplying the respective elasticity by the ratio of average state-state exports to average state-state stock of migrants; ---denotes that I found neither the corresponding summary statistics nor the estimate of the annual value of extra exports generated per migrant.…”
Section: Appendix: Gps Robustness Checksmentioning
confidence: 99%