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The pro-trade effect of the brain drain: Sorting out confounding factors

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  • Felbermayr, Gabriel
  • Jung, Benjamin

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.

Suggested Citation

  • Felbermayr, Gabriel & Jung, Benjamin, 2009. "The pro-trade effect of the brain drain: Sorting out confounding factors," Munich Reprints in Economics 20577, University of Munich, Department of Economics.
    • Handle: RePEc:lmu:muenar:20577
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    References listed on IDEAS

    as
    1. James A. Dunlevy, 2006. "The Influence of Corruption and Language on the Protrade Effect of Immigrants: Evidence from the American States," The Review of Economics and Statistics, MIT Press, vol. 88(1), pages 182-186, February.
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    5. Robert E.B. Lucas, 2006. "Migration and Economic Development in Africa: A Review of Evidence," Journal of African Economies, Centre for the Study of African Economies, vol. 15(2), pages 337-395, December.
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