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Does Migration Foster Exports? An African Perspective
Multiple Authors
eBook Edition: 2013
This paper assesses the impact of migration on export performances. In particular, it highlights and helps understand how African migrants foster African trade. Relying on a new dataset on international bilateral migration recently released by the World Bank spanning from 1980 to 2010, we estimate a gravity model that deals satisfactorily with endogeneity. Our results first indicate that the pro-trade effect of migration is especially large for African countries and that this finding can be partly explained by the substitution relationship between migrants and institutions (the existence of migrant networks compensating for weaker contract enforcement, for instance). This positive association seems to be particularly important for the exports of differentiated products. Moreover, focusing on intra-African trade, we find that the pro-trade effect of African migrants is larger when migrants are established in a more geographically and ethnically distant country. All these findings highlight the ability of African migrants to help overcome some of the main barriers to African trade: the weakness of institutions, information costs, cultural differences and lack of trust. (From Author)

eBook Contents

Non-technical summary - Abstract - Résumé non technique - Résumé court - Introduction - African Migration and Exports: an Overview - Review of the literature  - The empirical analysis - Results - Conclusion - References - Appendix A - Features of African migration and African trade - Appendix B - Variable definition and sources - Appendix C - Descriptive statistics - List of working papers released by CEPII

eBook License
: Copyrighted (Personal Use Only by downloading from CEPII)

Free PDF eBook - 948 Kb - 37 Pages