Weltwirtschaftliches Archiv

, Volume 138, Issue 1, pp 115–130 | Cite as

The link between immigration and trade: Evidence from the United Kingdom

  • Sourafel Girma
  • Zhihao Yu
Articles

Abstract

Immigration and Trade: Evidence from the United Kingdom. — This paper investigates the link between immigration and trade using recent UK data. Immigration from non-Commonwealth countries is shown to have a significant export-enhancing effect. By contrast, immigration from Commonwealth countries is found to have no substantial impact on exports. We conjecture that this could be because immigrants from the UK’s former colonies do not bring with them any new information that can help substantially reduce the transaction cost of trade between their home countries and the host nation. The study also reveals a pro-imports effect of immigration from the non-Commonwealth countries, whereas immigration from the Commonwealth appears to be reducing imports, perhaps reflecting trade-substituting activities by immigrants.

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Copyright information

© Institut fur Weltwirtschaft an der Universitat Kiel 2002

Authors and Affiliations

  • Sourafel Girma
  • Zhihao Yu

There are no affiliations available

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