Analyzing the Immigration-Induced Changes in Product Diversity and Trade Patterns: The Case of the EU-Mediterranean-Eastern Europe Zone


ÇAĞATAY S., DEĞİRMEN S., Genc M., Koska O. A., Lucke B., Saygin P. O.

SOCIO-ECONOMIC IMPACT OF MIGRATION FLOWS: EFFECTS ON TRADE, REMITTANCES, OUTPUT, AND THE LABOUR MARKET, ss.53-86, 2014 (SSCI) identifier

Özet

This chapter analyses the impacts of migration on international trade and product diversity. While Mediterranean Partners and Eastern European Countries constitute the home, the EU 27 constitutes the host countries. Trade analyses cover both total and industry-level bilateral exports and imports, and product diversity is measured by focusing both on industry-level employment and number of enterprises. The institutional framework that governs and facilitates the factor movement and trade of goods between the EU and home countries are also assessed. Almost in all cases migration is found to have a significant impact on both exports and imports. This outcome supports and accepts the "information bridge hypothesis" which boosts trade via lowering transaction costs. Empirical evidence also shows that migration do affect product diversity in some industries which justifies the existence of "transplanted home bias" that boosts imports from the home countries and motivates production in some industries at host countries.