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The Impacts of the Turkish Emigrants on Turkish Exports and Imports in Europe

Author

Listed:
  • Insel, Aysu
  • Sungur Cakmak, Nesrin

Abstract

This paper examines the link between migration and trade, focusing on Turkey as a “sending” country and the selected trading partners, Austria, Belgium, Denmark, Finland, France, Germany, Holland, Italy, Norway, Spain, Sweden, Switzerland and the UK, as the “receiving” countries in Europe. The research question is: “Do Turkish emigrants have positive impacts on the exports and imports of Turkey through preference and/or network channels.” The investigation methodology involves the fixed effect panel data analysis, and the estimation technique is the Least Squares under the assumption of the presence of cross section heteroskedasticity and the robust standard errors. This paper includes the 1980-2007 period, as well as two sub-periods, 1980-1995 and 1996-2007, in order to test the impact of the 1995 December Customs Union agreement between Turkey and EU countries. The trade function has been determined by the stock of Turkish population, per capita real income, real exchange rate, and the lagged dependent variable. It has been found that Turkish emigrants have significantly positive effect on trade mainly after the Custom Union Agreement, through the preference and network channels.

Suggested Citation

  • Insel, Aysu & Sungur Cakmak, Nesrin, 2010. "The Impacts of the Turkish Emigrants on Turkish Exports and Imports in Europe," MPRA Paper 22100, University Library of Munich, Germany, revised 30 Apr 2010.
    • Handle: RePEc:pra:mprapa:22100
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    File URL: https://mpra.ub.uni-muenchen.de/22100/3/MPRA_paper_22100.pdf
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    References listed on IDEAS

    as
    1. Sourafel Girma & Zhihao Yu, 2002. "The link between immigration and trade: Evidence from the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 115-130, March.
    2. José V. Blanes & Joan A. Martín-Montaner, 2006. "Migration Flows and Intra-Industry Trade Adjustments," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 142(3), pages 567-584, October.
    3. David Law & Murat Genç & John Bryant, 2013. "Trade, Diaspora and Migration to New Zealand," The World Economy, Wiley Blackwell, vol. 36(5), pages 582-606, May.
    4. Roger White, 2007. "Immigrant-trade links, transplanted home bias and network effects," Applied Economics, Taylor & Francis Journals, vol. 39(7), pages 839-852.
    5. Thanh Le, 2009. "Trade, Remittances, Institutions, and Economic Growth," International Economic Journal, Taylor & Francis Journals, vol. 23(3), pages 391-408.
    6. John F. Helliwell, 1997. "National Borders, Trade and Migration," NBER Working Papers 6027, National Bureau of Economic Research, Inc.
    7. David M. Gould, 1991. "Immigrant links to the home country: empirical implications for U.S. and Canadian bilateral trade flows," Working Papers 9102, Federal Reserve Bank of Dallas.
    8. Canavire Bacarreza, Gustavo Javier & Ehrlich, Laura, 2006. "The Impact of Migration on Foreign Trade: A Developing Country Approach," MPRA Paper 1090, University Library of Munich, Germany.
    9. Horácio C. Faustino & Nuno Carlos Leitão, 2008. "Immigration and Trade in Portugal: A Static and Dynamic Panel Data Analysis," Working Papers Department of Economics 2008/31, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
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    Cited by:

    1. Hakan Kilic & Gudrun Biffl, 2022. "Turkish Migration Policy from the 1960s Until Today: What National Development Plans Tell Us," Journal of International Migration and Integration, Springer, vol. 23(4), pages 2047-2073, December.

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    More about this item

    Keywords

    Migration; Trade; Panel data; Dynamic models; Turkey;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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