Theoretical and Applied Economics
No. 4 / 2016 (609), Winter
Migration – trade nexus revisited: Empirical evidence from Turkish emigrants in OECD countries
Celal Bayar University of Manisa, Turkey
Abstract. In recent decades, economists seek to find the answers of two very fundamental questions “why has global trade grown, and what are the consequences of that growth?”. Two answers that come to mind immediately are trade liberalisation and falling transportation costs. Another possible explanation is that trade has grown because economies have converged in economic size. A fourth source may be increased outsourcing. And as another factor the international movement of people may play a significant role on international trade. The declining cost of travel and communications has lowered information barriers and encouraged migration across national borders.
The current paper aims at testing the impact of migration on bilateral trade in an augmented panel gravity model framework. To this end the relationship between Turkish emigrant stock in the 13 OECD countries and bilateral trade volume (imports and exports) for the years 2000-2012 was analysed. Economic size and geographical distance between trading partners were controlled. Empirical results show that there is a significant impact of migration on bilateral trade both in terms of imports and exports. On the other hand, as expected, economic size and distance have positive and negative effect respectively on trade.
Contents
The influence of fiscal freedom, government effectiveness and human development index on tax evasion in the European Union
Limitation of ARIMA models in financial and monetary economics
The Romania's challenges regarding the integration in the Euro Area
Does remittance drive economic growth in emerging economies: Evidence from FMOLS and Panel VECM
Effectiveness of monetary policies in OECD countries
Determinants of household loans
Tourism and economic structural change with endogenous wealth and human capital and elastic labor supply
Migration – trade nexus revisited: Empirical evidence from Turkish emigrants in OECD countries
New pillars of the banking business model or a new model of doing banking?
Effects of R&D and innovation on income in EU countries: new generation panel cointegration and causality analysis
The major economic evolution of Romania by the middle of 2016
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The relationships among the returns of investment instruments: a vector autoregressive approach for Turkey
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Information asymmetry and technical efficiency: Case of a panel of Tunisian insurance companies
FDI and export spillovers using Heckman’s two step approach: Evidence from Turkish manufacturing data