Exploring a US Immigrant–Intra-Industry Trade Link.

The article examines the determinants of intra-industry trade (IIT) and the effect of immigration on trade flows in the U.S. There are two distinct channels through which immigrants may increase trade between their host and home countries. Immigrants may arrive in the host country with preferences for home country products to find that the goods are unavailable. They may also increase both host country imports from and exports to the host country if immigrants arrive with business contacts required to conduct business in their home countries. Considerable variation in the influence of immigrants on IIT across countries was found by using World Bank income classifications.