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Export, Migration and Costs of Trade: Evidence from Central European Firms

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  • Dieter Pennerstorfer

Abstract

P ennerstorfer D. Export, migration and costs of trade: evidence from Central European firms, Regional Studies . This article analyses the link between immigration and trade at the firm level, utilizing information on the export activities of 8300 firms located in different Central European countries (Austria, Czech Republic, Slovakia and Hungary) for various export markets as well as regional data on immigration. The empirical analysis suggests a strong, economically meaningful and statistically significant impact of immigration on the export propensity (extensive margin), whereas the influence on firms' export volumes (intensive margin) is much smaller. This leads to the conclusion that immigrants promote export activities to their home countries mainly by reducing fixed costs of trade.

Suggested Citation

  • Dieter Pennerstorfer, 2016. "Export, Migration and Costs of Trade: Evidence from Central European Firms," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 848-863, May.
    • Handle: RePEc:taf:regstd:v:50:y:2016:i:5:p:848-863
    DOI: 10.1080/00343404.2014.947565
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    Cited by:

    1. Groizard, José L. & Martín-Montaner, Joan, 2023. "Migrants, regulations, and trade," Economic Modelling, Elsevier, vol. 120(C).

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