Title: Migration and export performance: the role of diaspora remittances

Authors: Luís Miguel Pacheco; Isabel Maldonado; Carla Azevedo Lobo

Addresses: Portucalense University – Department of Economics and Management, REMIT – Research on Economics, Management and Information Technologies, IJP – Portucalense Institute for Legal Research, Rua Dr. António Bernardino de Almeida, 541-619, 4200-072 Porto – Portugal ' Portucalense University – Department of Economics and Management, REMIT – Research on Economics, Management and Information Technologies, GOVCOPP – Research Unit on Governance, Competitiveness and Public Policies, Rua Dr. António Bernardino de Almeida, 541-619, 4200-072 Porto – Portugal ' Portucalense University – Department of Economics and Management, REMIT – Research on Economics, Management and Information Technologies, IJP – Portucalense Institute for Legal Research, Rua Dr. António Bernardino de Almeida, 541-619, 4200-072 Porto – Portugal

Abstract: Migration and international trade represent two fundamental and interconnected aspects of globalisation. This paper studies the impact of migration on bilateral trade, using data for remittances as a proxy for migrants in an augmented panel data gravity model framework. Using data for Portuguese bilateral trade with 187 countries for the period 2008-2017, and controlling for other determinants of trade through a standard gravity model, we find that there is a significant impact of remittances on bilateral trade both in terms of exports and imports, particularly regarding some specific types of goods. The evidence of a significant relationship between migration and trade has important implications since it can provide policymakers with an alternative option to promote trade and internationalisation beyond conventional trade policy.

Keywords: migration; internationalisation; gravity model; remittances; diaspora.

DOI: 10.1504/IJTGM.2024.137742

International Journal of Trade and Global Markets, 2024 Vol.19 No.2, pp.174 - 192

Accepted: 10 Nov 2022
Published online: 04 Apr 2024 *

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