A Cross Country View On South-North Migration And Trade: Dissecting the Channels.

33 Pages Posted: 18 Aug 2008 Last revised: 2 Apr 2010

See all articles by Giulia Bettin

Giulia Bettin

Università Politecnica delle Marche - Department of Economics

Alessia Lo Turco

Università Politecnica delle Marche - Department of Economics and Social Sciences

Date Written: March 31, 2010

Abstract

We explore the nexus between North-South trade and migration in a cross country framework over the period 1990-2005. In addition to the relatively unexploited cross country framework, our main contribution resides in the search for heterogeneous responses of trade to migration according to different good typologies. Besides the usual distinction between homogeneous and di fferentiated products dictated by the information channel, we also investigate the e ffects of migration on trade in primary and final goods and in labour and capital intensive goods with the purpose to assess the preferences and technology channels too. Our results show that, as expected, migration enhances the imports of primary and final goods (preferences channel) and the exports of diff erentiated-low elasticity of substitution goods (information channel). On the other hand, there is some evidence that the increase in the presence of migrants from the South enhances the export of labour intensive goods (technology channel).

Keywords: South-North, migration, trade

JEL Classification: F10, F16, F22

Suggested Citation

Bettin, Giulia and Lo Turco, Alessia, A Cross Country View On South-North Migration And Trade: Dissecting the Channels. (March 31, 2010). Available at SSRN: https://ssrn.com/abstract=1233544 or http://dx.doi.org/10.2139/ssrn.1233544

Giulia Bettin

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli 8
Ancona, 18039
Italy
+39 071 2207079 (Phone)
+39 071 2207102 (Fax)

Alessia Lo Turco (Contact Author)

Università Politecnica delle Marche - Department of Economics and Social Sciences ( email )

Piazzale Martelli 8
Ancona
Italy
+390712207250 (Phone)

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