Review of World Economics

, 145:225

Market structure and the link between migration and trade

Original Paper

DOI: 10.1007/s10290-009-0012-7

Cite this article as:
Tai, S.H.T. Rev World Econ (2009) 145: 225. doi:10.1007/s10290-009-0012-7


Many recent studies have looked at the impact of international migration on trade and found a significant effect. They posit that migration fosters trade by lowering costs or by means of a preference bias. However, to my knowledge, market structure has not as yet been considered. Using data from Switzerland, this paper empirically assesses the extent to which migration affects trade, taking goods differentiation into account. A monopolistic model with a multisector economy (Chaney in Am Econ Rev 98(41):1707–1721, 2008) is then empirically estimated. The findings show that market structure explains the different channels through which migration affects trade.


MigrationInternational tradeMarket structureGravity

JEL classification


Copyright information

© Kiel Institute 2009

Authors and Affiliations

  1. 1.Paris School of Economics, Université Paris 1 Panthéon, SorbonneParisFrance