IDEAS home Printed from https://ideas.repec.org/p/saq/wpaper/11-20.html
   My bibliography  Save this paper

Migration and Trade during the Belle Époque in Argentina (1870-1913)

Author

Listed:
  • Giuseppe De Arcangelis

    (Department of Social Sciences and Economics, Sapienza University of Rome)

  • Rama Dasi Mariani

    (CEIS, University of Rome Tor Vergata; Department of Social Sciences and Economics, Sapienza University of Rome)

  • Federico Nastasi

    (Department of Social Sciences and Economics, Sapienza University of Rom)

Abstract

Between 1870 to 1914 the Argentine economy performed spectacularly with a yearly average real growth rate of 5.94 per cent. Increased resource endowment in both land and labor, via migration, and openness to trade have been considered the two main drivers of this success. In this paper we underline the central role of Argentine immigration in contributing not only to increase resource endowments, but also to lower trade costs boosting exports and imports. By considering Argentine bilateral trade and migration from eight European countries (Austro-Hungarian Empire, Belgium, France, Germany, Italy, Spain, Switzerland and United Kingdom) we use a migration-augmented gravity model to estimate the contribution of the massive inflows of Europeans. In particular, we find that the main pro-trade effect was on imports: an increase of 10 per cent of migrants from one country could increase imports up to 8 per cent from the same trade partner. To overcome the typical endogeneity problem our study proposes migration to the US from the same countries as a instruments that could capture the same push (but not Argentine pull) factors triggering European out-migration.

Suggested Citation

  • Giuseppe De Arcangelis & Rama Dasi Mariani & Federico Nastasi, 2020. "Migration and Trade during the Belle Époque in Argentina (1870-1913)," Working Papers 11/20, Sapienza University of Rome, DISS.
    • Handle: RePEc:saq:wpaper:11/20
    as

    Download full text from publisher

    File URL: http://www.diss.uniroma1.it/sites/default/files/allegati/DiSSE_DeArcangelisetal_wp11_2020.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Massimiliano Bratti & Luca Benedictis & Gianluca Santoni, 2014. "On the pro-trade effects of immigrants," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 557-594, August.
    2. David Atkin, 2013. "Trade, Tastes, and Nutrition in India," American Economic Review, American Economic Association, vol. 103(5), pages 1629-1663, August.
    3. Head, Keith & Mayer, Thierry, 2014. "Gravity Equations: Workhorse,Toolkit, and Cookbook," Handbook of International Economics, in: Gopinath, G. & Helpman, . & Rogoff, K. (ed.), Handbook of International Economics, edition 1, volume 4, chapter 0, pages 131-195, Elsevier.
    4. David H. Autor & David Dorn & Gordon H. Hanson, 2013. "The China Syndrome: Local Labor Market Effects of Import Competition in the United States," American Economic Review, American Economic Association, vol. 103(6), pages 2121-2168, October.
    5. Zamagni, Vera, 1997. "The Economic History of Italy 1860-1990," OUP Catalogue, Oxford University Press, number 9780198292890.
    6. Sourafel Girma & Zhihao Yu, 2002. "The link between immigration and trade: Evidence from the United Kingdom," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 138(1), pages 115-130, March.
    7. David S. Jacks & John P. Tang, 2018. "Trade and Immigration, 1870-2010," NBER Working Papers 25010, National Bureau of Economic Research, Inc.
    8. Thomas Chaney, 2016. "Networks in International Trade," SciencePo Working papers Main hal-03259805, HAL.
    9. Roger White, 2007. "Immigrant-trade links, transplanted home bias and network effects," Applied Economics, Taylor & Francis Journals, vol. 39(7), pages 839-852.
    10. Noel Gaston & Douglas R. Nelson, 2013. "Bridging Trade Theory And Labour Econometrics: The Effects Of International Migration," Journal of Economic Surveys, Wiley Blackwell, vol. 27(1), pages 98-139, February.
    11. Leticia Arroyo Abad & Blanca Sánchez-Alonso, 2018. "A city of trades: Spanish and Italian immigrants in late-nineteenth-century Buenos Aires, Argentina," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 12(2), pages 343-376, May.
    12. C.B. Schedvin, 1990. "Staples and regions of Pax Britannica," Economic History Review, Economic History Society, vol. 43(4), pages 533-559, November.
    13. Mitchener, Kris James & Weidenmier, Marc D., 2008. "The Baring Crisis and the Great Latin American Meltdown of the 1890s," The Journal of Economic History, Cambridge University Press, vol. 68(2), pages 462-500, June.
    14. Inklaar, Robert & de Jong, Harmen & Bolt, Jutta & van Zanden, Jan, 2018. "Rebasing 'Maddison': new income comparisons and the shape of long-run economic development," GGDC Research Memorandum GD-174, Groningen Growth and Development Centre, University of Groningen.
    15. Federico Droller, 2018. "Migration, Population Composition and Long Run Economic Development: Evidence from Settlements in the Pampas," Economic Journal, Royal Economic Society, vol. 128(614), pages 2321-2352, September.
    16. Giovanni Federico & Antonio Tena-Junguito, 2017. "A tale of two globalizations: gains from trade and openness 1800–2010," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(3), pages 601-626, August.
    17. Michel Fouquin & Jules Hugot, 2016. "Two Centuries of Bilateral Trade and Gravity data: 1827-2014," Vniversitas Económica, Universidad Javeriana - Bogotá, vol. 0(0), pages 1-39, August.
    18. Blanca Sánchez‐Alonso, 2019. "The age of mass migration in Latin America," Economic History Review, Economic History Society, vol. 72(1), pages 3-31, February.
    19. Gould, David M, 1994. "Immigrant Links to the Home Country: Empirical Implications for U.S. Bilateral Trade Flows," The Review of Economics and Statistics, MIT Press, vol. 76(2), pages 302-316, May.
    20. Keith Head & John Ries, 1998. "Immigration and Trade Creation: Econometric Evidence from Canada," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 47-62, February.
    21. Badi H. Baltagi, 2021. "Simultaneous Equations with Error Components," Springer Texts in Business and Economics, in: Econometric Analysis of Panel Data, edition 6, chapter 0, pages 157-186, Springer.
    22. Rauch, James E., 1999. "Networks versus markets in international trade," Journal of International Economics, Elsevier, vol. 48(1), pages 7-35, June.
    23. Alan M. Taylor, 1994. "Three Phases of Argentine Economic Growth," NBER Historical Working Papers 0060, National Bureau of Economic Research, Inc.
    24. Zhang, Penglong, 2020. "Home-biased gravity: The role of migrant tastes in international trade," World Development, Elsevier, vol. 129(C).
    25. Zimmermann, Klaus F. (ed.), 2005. "European Migration: What Do We Know?," OUP Catalogue, Oxford University Press, number 9780199257355.
    26. Mark G. Herander & Luz A. Saavedra, 2005. "Exports and the Structure of Immigrant-Based Networks: The Role of Geographic Proximity," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 323-335, May.
    27. James E. Rauch & Vitor Trindade, 2002. "Ethnic Chinese Networks In International Trade," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 116-130, February.
    28. Vicente Pinilla & Agustina Rayes, 2019. "How Argentina became a super-exporter of agricultural and food products during the First Globalisation (1880–1929)," Cliometrica, Springer;Cliometric Society (Association Francaise de Cliométrie), vol. 13(3), pages 443-469, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 9, pages 301-337, Edward Elgar Publishing.
    2. Giorgia Giovannetti & Mauro Lonati, 2014. "The impact of product quality on the pro-trade elasticity of immigrants," Working Papers - Economics wp2014_11.rdf, Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa.
    3. Massimiliano Bratti & Luca Benedictis & Gianluca Santoni, 2014. "On the pro-trade effects of immigrants," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(3), pages 557-594, August.
    4. Christopher R. Parsons & L. Alan Winters, 2014. "International migration, trade and aid: a survey," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 4, pages 65-112, Edward Elgar Publishing.
    5. Anna D’Ambrosio & Sandro Montresor, 2022. "The pro-export effect of subnational migration networks: new evidence from Spanish provinces," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 158(1), pages 53-107, February.
    6. Yuheng Lin & Dooruj Rambaccussing & Yu Zhu, 2024. "The impact of international students in the UK on the cultural goods trade," French Stata Users' Group Meetings 2024 29, Stata Users Group.
    7. David Law & Murat Genç & John Bryant, 2013. "Trade, Diaspora and Migration to New Zealand," The World Economy, Wiley Blackwell, vol. 36(5), pages 582-606, May.
    8. D'Ambrosio, Anna & Montresor, Sandro, 2017. "Migration and Trade Ows: New Evidence from Spanish Regions," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201724, University of Turin.
    9. Andreas Hatzigeorgiou & Magnus Lodefalk, 2016. "Migrants’ Influence on Firm-level Exports," Journal of Industry, Competition and Trade, Springer, vol. 16(4), pages 477-497, December.
    10. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect?," IZA Discussion Papers 6975, Institute of Labor Economics (IZA).
    11. Steingress, Walter, 2015. "The Causal Impact of Migration on US Trade: Evidence from a Natural Experiment," IZA Discussion Papers 9058, Institute of Labor Economics (IZA).
    12. Marina Murat, 2014. "Soft, hard or smart power? International students and investments abroad," Center for Economic Research (RECent) 107, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    13. Giorgia Giovannetti & Mauro Lanati, 2017. "Do High-Skill Immigrants trigger High-Quality Trade?," The World Economy, Wiley Blackwell, vol. 40(7), pages 1345-1380, July.
    14. Marina Murat, 2013. "Education ties and investments abroad. Empirical evidence from the US and UK," Department of Economics (DEMB) 0014, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    15. Roger White, 2010. "Migration and International Trade," Books, Edward Elgar Publishing, number 13670.
    16. Robert E.B. Lucas, 2014. "The migration–trade link in developing economies: a summary and extension of evidence," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 11, pages 288-326, Edward Elgar Publishing.
    17. BELLINO, Antonella & CELI, Giuseppe, 2016. "The Migration-Trade Nexus in the Presence of Vertical and Horizontal Product Differentiation," CELPE Discussion Papers 137, CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy.
    18. Marina Murat, 2014. "Soft, hard or smart power? International students and investments abroad," Department of Economics 0043, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    19. Roger White & Bedassa Tadesse, 2008. "Cultural Distance and the US Immigrant–Trade Link," The World Economy, Wiley Blackwell, vol. 31(8), pages 1078-1096, August.
    20. Anthony Briant & Pierre-Philippe Combes & Miren Lafourcade, 2014. "Product Complexity, Quality of Institutions and the Protrade Effect of Immigrants," The World Economy, Wiley Blackwell, vol. 37(1), pages 63-85, January.

    More about this item

    Keywords

    Gravity Model; Migration and Imports; China-shock based Instrumental Variable;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • N76 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Latin America; Caribbean

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:saq:wpaper:11/20. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Pierluigi Montalbano (email available below). General contact details of provider: https://edirc.repec.org/data/dtrosit.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.
    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy