Migrants, networks and regional trade: Evidence from European regions

07  April 2022    3:00 pm CEST

Evgenii Monastyrenko, University of Luxembourg

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This paper presents the first cross-country evidence on the contribution of migrants to trade flows at the regional level. Using a novel database of regional trade flows between 267 European regions for 2013, this study examines how migrants affect trade flows between European regions and the rest of the world. A standard gravity model and shift-share instruments based on past settlements are used to claim causality.The results suggest that a 10% increase in immigration increases exports by 1.21%.This marginal effect is more substantial for highly qualified migrants (2.52%) and for imports (2.5%). The impact of migrants further varies by the level of economic development of the region and the quality of institutions in both the host and origin countries.

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Evgenii Monastyrenko

Evgenii Monastyrenko obtained PhD in International Economics at the Paris School of Economics and Paris 1 Panthéon-Sorbonne. Since September 2018 he is a post-doc researcher at University of Luxembourg. Evgenii Monastyrenko has a publication in Energy Policy (2017) and a recently accepted paper in Journal of International Economics (forthcoming). His current research fields are International Trade and Development Economics. Recently he mostly works on the various problems of product quality in international trade and general equilibrium.

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Keywords: migration, international trade, gravity model, regions, EU28

JEL classification: O33, F14, F22