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Journal of Economic Integration 2003 December;18(4) :1-13.
Immigration, Trade Costs and Trade: Gravity Evidence for Greece

Andromachi S. PiperakisChris MilnerPeter W. Wright 

School of Economics, University of Nottingham, University Park, Nottingham NG7 2RD, U.K.
Copyright ©2003 Journal of Economic Integration
This paper investigates the influence of immigration into Greece on the volumes of Greeces bilateral trade using a gravity modelling approach. An augmented gravity model is estimated using a panel data set for the period 1981-1991. The results show that immigration had a positive impact on the volume of Greeces bilateral exports, but no effect on its bilateral imports. This is consistent with immigration reducing transactions or trading costs on Greeces exports. JEL Classification: F10, F22
Keywords: Trade | migration | gravity models
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