Does Immigration Stimulate Non-Traditional Exports? Evidence from Zambia

  • Maio Bulawayo
  • Dale Mudenda
  • Manenga Ndulo
  • Charles Simwanza
Keywords: Gravity model; Immigration; PPML; Trade; Zambia

Abstract

This paper investigates the effect of immigration on trade flows using Zambia as a case study. Using panel data for the period 1990-2018, the relationship is formulated using a gravity model and estimated using the Poisson Pseudo Maximum Likelihood Estimation (PPML). The model estimated the influence of immigration on total trade, imports and non-traditional exports (NTEs), while controlling for whether or not the trade partner has a trade agreement with Zambia.  The results show a positive association between immigration and total trade, imports and NTEs. It points to the importance of social networks in fostering trade flows across countries and that trade costs matter.

Published
2020-10-11
Section
Articles

Journal Identifiers


eISSN: 2453-5966
print ISSN: 1821-8148