Does Immigration Help to Explain Intra-Industry Trade? Evidence for Spain

Jose Blanes

No E2004/29, Economic Working Papers at Centro de Estudios Andaluces from Centro de Estudios Andaluces

Abstract: This paper argues and provides evidence that the stock of immigrants in a country have a positive effect on the share of its bilateral intra-industry trade (IIT). The paper links the literatures about immigration and trade and about IIT determinants. The key is that immigration contributes to trade transaction costs reduction and this would benefit more intra than inter-industry trade. We test this hypothesis using Spanish data and departing from the models developed by Helpman (1987). Immigration helps more IIT in manufactures and IIT between Spain and less developed countries. Results are robust both to different estimation methods and specifications.

Keywords: Intra-industry trade; immigration. (search for similar items in EconPapers)
JEL-codes: F31 F32 F33 (search for similar items in EconPapers)
Pages: 25 pages
Date: 2004
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (9)

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Journal Article: Does Immigration Help to Explain Intra-Industry Trade? Evidence for Spain (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:cea:doctra:e2004_29

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