FEMISE Research Paper FEM44-11 : Migration, Comparative Advantages and Knowledge Diffusion in the EU-Mediterranean region
October 23, 2019
Overall, the estimation results show that the trade effect of immigration from MENA to EU is always positive while that of emigration from EU to MENA is negative or not significant. However, the trade effects of immigration encountered between EU and MENA partners are lower with respect to other EU partner areas.
Besides, the migration induced effect on bilateral trade is higher in low tech than in medium and high tech. If we concentrate on trade of EU with third countries, a measure adopted as a proxy for the spillover channel, we observe that immigration from MENA increases the intensive margin of EU trade in medium tech products but not the extensive margin and emigration does not have a significant impact. Interdependencies between migration and trade policies pointed out by the results of our investigation are meaningful for migration policies of EU countries towards MENA.