East-West Migration and the Immigrant-Trade Link: Evidence from Italy

Employing data for Italy and 68 trade partners that span the period 1996 2001, we examine the role of immigrants in influencing Italian exports to and imports from their respective home countries. Particular emphasis is placed on variation in the immigrant trade relationship across Former Soviet Republic FSR and Post Communist PCOM country classifications relative to immigrants from non FSR and non PCOM countries. The findings provide information that may assist in policy formulation and lead to more enlightened public and political debates of the issue. Immigrants are generally found to exert pro trade influences, with proportional immigrant effects being somewhat comparable across home country classifications. However, estimated per immigrant effects, in absolute terms, of immigrants from FSR or PCOM countries are greater in magnitude as compared to the effects of immigrants from non FSR and non PCOM countries. JEL Classifications: F14, F15, F22

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