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The contribution of migrants in enhancing foreign trade

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Abstract:

This chapter explains the role of migrants as facilitators of foreign trade. First, the theory of why migration across countries may lower trade‐transaction costs and thus spur trade is described. Second, some of the most important empirical evidence on migrants' trade facilitating capabilities is provided. Finally, the chapter briefly discusses some implications for policy and explains how Sweden, a small and economically open country with a relatively large foreign‐born population, has set out to utilise these findings to stimulate foreign trade.

Document Type: Review Article

Publication date: November 1, 2010

oecd/16080289/2010/00002010/00000022/8110221ec014
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