Intra-industry trade and United States immigration

• Author(s): Leitão, Nuno Carlos
• Date: 2011
• Persistent ID: http://hdl.handle.net/10400.15/378
• Origin: Repositório Científico do Instituto Politécnico de Santarém
• Subject(s): Immigration; Intra-industry trade; Monopolistic competition; United States; Panel Data
• Document Type: Article
• Language: English

Description

This paper examines the relationship between intra-industry trade and immigration flows using gravity model for the period 1995-2008 between United States and NAFTA, European Union and ASEAN. Our results show that the stock of immigration has a positive effect on intra-industry trade. We conclude that the immigration contributes to decrease the costs of transport costs ant this promotes the IIT. We examine this topic with static and dynamic panel data approach to test country-specific characteristics.