International Migration and Economic Integration
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International Migration and Economic Integration Understanding the Immigrant–Trade Link

Understanding the Immigrant–Trade Link

Roger White and Bedassa Tadesse

This essential volume examines the influence of immigrants on the process of international economic integration – specifically, their influences on bilateral and multilateral trade flows. It extends beyond the identification and explanation of the immigrant–trade link and offers a more expansive treatment of the subject matter, making it the most comprehensive volume of its kind. The authors present abundant evidence that confirms the positive influences of immigrants on trade between their home and host countries; however the immigrant–trade link may not be universal. The operability of the link is found to depend on a variety of factors related to immigrants’ home countries, their host countries, the types of goods and services being traded and the anthropogenic characteristics of the immigrants themselves.
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Chapter 14: Lessons Learned and Suggestions for Future Research

Roger White and Bedassa Tadesse


14 Lessons learned and suggestions for future research 14.1 THE LESSONS LEARNED The overarching goal of this book has been to provide information on the role that immigrants may play in the process of international economic integration – specifically, through their potential influences on bilateral and multilateral trade flows. Better understanding the immigrant–trade relationship allows for a more complete understanding of international economic integration and, more generally, of the process of globalization. To facilitate this end, we have applied the augmented gravity model to data on trade and migration to complete analyses that involve as few as one host country and 54 home countries to as many as 110 host countries and 131 home countries. The analyses span various time periods, ranging from a single year to recent decades. We have utilized various econometric methods and, by doing so, have entertained a number of related hypotheses. The results from these studies provide relevant information that contributes directly to the enhancement of our understanding of the immigrant–trade link. Moreover, as noted, the results are potentially useful for the formulation of related public policies such as immigration policy and trade policy. Collectively, the findings provide answers to the following questions. ● ● ● ● ● Is there evidence of a positive and significant influence of immigrants on trade between their respective host and home countries? Are the influences of immigrants on trade homogenous across product types and industry/sector classifications? Have immigration policies and changes in such policies influenced the immigrant–trade relationship? Do differences in relative...

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