Abstract

Current research finds that migration and trade are positively correlated on the aggregate. In this paper, we argue that the relationship is non-uniform and show that the extent of integration of migrants into the host country and the existing exporting opportunities at home significantly explain the extent to which migrants affect trade. Our analysis of 50,000 Chinese exporters and migrants in 205 nations reveal that less-integrated migrants drive home exports, while privately owned and remotely located exporters with limited resources or external connections benefit more from migration. Further, we show that migrants significantly boost export revenue aiding long term sustainability.

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