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The Role of Migration in the Variety and Quality of Trade: Evidence from Germany

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  • Bellino Antonella

    (University of Foggia,Foggia, Italy)

  • Celi Giuseppe

    (University of Foggia,Foggia, Italy)

Abstract

We explore the migration-trade nexus in the case of Germany over the period 2000-09, disentangling the two dimensions of intra-industry trade (vertical and horizontal). We find that immigration is positively and significantly related to intraindustry trade. However, the magnitude and statistical significance of migration’s impact on trade are considerably higher for horizontal intra-industry trade and increase with the difference in the level of development between Germany and the partner countries. This pattern is consistent with the view that information flows between migrant communities and their country of origin may be more important for consumer goods (where trade in varieties prevails) and that this information effect is more important if trading countries are very different.

Suggested Citation

  • Bellino Antonella & Celi Giuseppe, 2016. "The Role of Migration in the Variety and Quality of Trade: Evidence from Germany," German Economic Review, De Gruyter, vol. 17(1), pages 1-25, February.
    • Handle: RePEc:bpj:germec:v:17:y:2016:i:1:p:1-25
    DOI: 10.1111/geer.12083
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    2. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2018. "Do Migrants Facilitate Internationalization? A Review of the Literature," Working Papers 2018:11, Örebro University, School of Business, revised 19 Dec 2019.
    3. Hande Aksöz Yılmaz, 2020. "The Impact of Foreign Trade on Immigration from Turkey to Germany: ARDL Bounds Test Approach," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 62(62), pages 123-143, December.
    4. Margit Osterloh & Bruno S. Frey, 2017. "Migration Policy: Lessons from Cooperatives," CESifo Working Paper Series 6364, CESifo.
    5. Hande Aksöz Yılmaz, 2020. "The Impact of Foreign Trade on Immigration from Turkey to Germany: ARDL Bounds Test Approach," Journal of Economy Culture and Society, Istanbul University, Faculty of Economics, vol. 62(0), pages 123-143, December.

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