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This study estimates the impact of interprovincial and international migration on interprovincial
trade using annual data from 1981- 2016 for Canadian provinces. Estimated results show that interprovincial and international net migrations are positive and significant determinants for interprovincial trade of Canada. Interprovincial immigration is m...
Contexts in source publication
Context 1
... name of the variables, the description about the variables and the respective sources are given in Table 1 (in Appendix). A summary of interprovincial and international migration is given in Table 3 and Table 4. These tables show that Ontario, Quebec, BC and Alberta are the major provinces of interprovincial and international migration. ...Context 2
... immigration data (1981 -2016) 6 shows that interprovincial migration is also Labrador (8,194), and Prince Edward Island (2,777) show significant interprovincial migration among Canadian provinces. This indicates that some provinces such as Ontario, BC, Quebec and Alberta are preferable to the migrants over others (see, Table 3). ...Similar publications
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Citations
... Canadian interprovincial migration has been higher than net immigration (see Figure 1). Over the past 35 years , on average, approximately 294 thousand Canadians moved between provinces every year which is much greater than Canadian average annual immigration (212 thousand foreign immigrants) (see, Aziz et al., 2023;Aziz & Mahar, 2019). The number of interprovincial migrants in each province is much higher if we consider the stock of interprovincial migrants (see, APPENDIX B). ...
We contribute to the literature by exploring the variation in the trade-creating effect of migration networks across historical migrants and recent migrants by applying a micro-founded gravity model of trade. Both the stock of historical migrants and recent migrants variables are constructed by merging Canadian Census data with the migration data available in Statistics Canada. We address the endogeneity issue by applying IV estimators including two-step feasible GMM and PPML with IV and fixed effects by utilizing the imputed annual migration flow, the historical stock, and recent stock of migrants as instrumental variables proposed by Peri and Requena (2010). Taking Canadian geographical features into account, this study also applies carefully measured gravity variables. We control for the time-varying, exporter-year fixed effects, and importer-year fixed effects in a panel estimation. Estimated results show that annual migration, recent provincial stock of migrants, and historical stock of migrants significantly increase Canadian interprovincial trade. This impact is stronger for the stock of historical migrants relative to the stock of recent migrants and annual migration flow. Sub-sample analysis shows that both recent and historical migration consistently increase interprovincial service trade, only but not interprovincial goods trade. A greater combination of English and French-speaking provinces-pair significantly increases interprovincial trade. Regional trade agreements significantly impact the interprovincial trade of Canada. Our estimated results are robust to different estimation methods and alternative measures for the migrants’ stock and flow variables.
