The Impact of Immigration on Portuguese Intra-Industry Trade

This paper investigates the relationship between intra-industry trade (IIT) and immigration flows using a gravity model for the period 2000-2010 between Portugal and European Union’s Member States (EU-27). The present study uses the methodology of Kandogan (2003) for separating IIT into its components horizontal (HIIT) and vertical intra-industry trade (VIIT). Using a panel data approach, our study find that immigration has a positive influence on Portuguese intra-industry trade. These results indicate that the immigration can reduce transaction costs between home and host country. We also consider in econometric model, the economic dimension which appears to exercise a positive effect on IIT. Our results confirm the hypothesis that there is a negative effect of transportation costs on trade.


Issue Date:
2013-02
Publication Type:
Working or Discussion Paper
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/146627
PURL Identifier:
http://purl.umn.edu/146627
Total Pages:
20
JEL Codes:
C20; C30; F12; L10
Series Statement:
CCSD
20.2013




 Record created 2017-04-01, last modified 2020-10-28

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