Riassunto analitico
Prior empirical studies focused on other countries noted an explicit and significant link between migration and trade, however, this study investigates the relationships between immigration and trade, empirical analysis based on Nigeria. To evaluate this hypothesis, the research employed a share of women migrants, and the total stock of migrants present in foreign countries alongside Nigeria's bilateral trade (import and export). In addition, the assumption of the empirical gravity model of trade states that the more neighboring and more enormous countries are, the likelihood of trade between them. On this fundamental premise, I equally applied the gravity model of trade using panel data of OLS regression model to analyse migrant networks and bilateral trade activities between Nigeria and 43 foreign trading partners for the period 1996 –2018. The regression result shows that the economic size of trading partners and distance maintains a significant effect on bilateral trade flows between Nigeria and these 43 foreign partner countries. Put differently, the end result tentatively suggests that distance impedes trade, a likelihood that Nigeria trades more with African countries with close boundaries, and that Nigeria’s foreign trading partners have robust economies. The result also reveals that networks of Nigerian women immigrants in foreign nations are positive and significant, thus boosting bilateral trade. The research result suggests that the network effect is crucial in overcoming informal trade barriers. Furthermore, the possible effect of emigrants is not significant.
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Abstract
Prior empirical studies focused on other countries noted an explicit and significant link between migration and trade, however, this study investigates the relationships between immigration and trade, empirical analysis based on Nigeria. To evaluate this hypothesis, the research employed a share of women migrants, and the total stock of migrants present in foreign countries alongside Nigeria's bilateral trade (import and export). In addition, the assumption of the empirical gravity model of trade states that the more neighboring and more enormous countries are, the likelihood of trade between them. On this fundamental premise, I equally applied the gravity model of trade using panel data of OLS regression model to analyse migrant networks and bilateral trade activities between Nigeria and 43 foreign trading partners for the period 1996 –2018. The regression result shows that the economic size of trading partners and distance maintains a significant effect on bilateral trade flows between Nigeria and these 43 foreign partner countries. Put differently, the end result tentatively suggests that distance impedes trade, a likelihood that Nigeria trades more with African countries with close boundaries, and that Nigeria’s foreign trading partners have robust economies. The result also reveals that networks of Nigerian women immigrants in foreign nations are positive and significant, thus boosting bilateral trade. The research result suggests that the network effect is crucial in overcoming informal trade barriers. Furthermore, the possible effect of emigrants is not significant.
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