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Market structure and the link between migration and trade

[journal article]

Tai, Silvio H. T.

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Abstract Many recent studies have looked at the impact of international migration on trade and found a significant effect. They posit that migration fosters trade by lowering costs or by means of a preference bias. However, to my knowledge, market structure has not as yet been considered. Using data from Switzerland, this paper empirically assesses the extent to which migration affects trade, taking goods differentiation into account. A monopolistic model with a multisector economy (Chaney in Am Econ Rev 98(41):1707–1721, 2008) is then empirically estimated. The findings show that market structure explains the different channels through which migration affects trade.
Keywords migration
Classification Political Economy; Economic Sectors
Free Keywords International trade; Market structure; Gravity; F10; F22
Document language English
Publication Year 2009
Page/Pages p. 225-249
Journal Review of World Economics, 145 (2009) 2
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)