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Immigration and Trade

Domenii publicaţii > Economie + Tipuri publicaţii > Articol în revistã ştiinţificã

Autori: Leitão N.C., Dima B., Dima (Cristea) Ş.

Editorial: Ekonomska istrazivanja - Economic Research, 25(1) , p.134-143, 2012.


This paper investigates the relationship between intra-industry trade (IIT), horizontal IIT, vertical IIT (VIIT) and immigration flows using a gravity model for the period 1995-2008 amongst Portugal and European Union’s Member States (EU-27). Using a panel data approach, the results show a positive correlation between immigration and IIT. These outcomes indicate that the immigration can reduce transaction costs between home and host country. We also consider the economic dimension which appears to exercise a positive effect on trade. Our research confirms the hypothesis that there is a negative effect of transportation costs on trade.

Cuvinte cheie: Intra-industry trade, Horizontal intra-industry trade, Vertical intra-industry trade, Immigration and Panel Data.