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Immigration, Trade Costs and Trade: Gravity Evidence for Greece

Immigration, Trade Costs and Trade: Gravity Evidence for Greece

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This paper investigates the influence of immigration into Greece on the volumes of Greeces bilateral trade using a gravity modelling approach. An augmented gravity model is estimated using a panel data set for the period 1981-1991. The results show that immigration had a positive impact on the volume of Greeces bilateral exports, but no effect on its bilateral imports. This is consistent with immigration reducing transactions or trading costs on Greeces exports.

Ⅰ. Introduction

Ⅱ. Greek immigration and trade

Ⅲ. Trade migration relationship

Ⅳ. Model specification and data

Ⅴ. Regression analysis and key findings

Ⅵ. Conclusions

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