The Trade Creation Effect of Immigrants: Testing the Theory on the Remarkable Case of Spain

There is abundant evidence that immigrants' networks are associated with larger trade flows between countries of origin and the country (or province) where they settle. The causality of such relation and its magnitude, however, have not been proven beyond reasonable doubt. We use the simple predictions of the model by Chaney (2008) and treat networks of migrants as a device that reduces fixed bilateral trade costs. In so doing we have strong predictions on the effect of immigrants on total exports, exports by category of goods, and on the extensive and intensive margin of trade. We test these predictions using the remarkable and uneven increase of immigration to Spanish provinces between 1993 and 2008. The richness of our data, a panel of import and export by sector between 50 Spanish provinces and 77 countries over fifteen years, allows us to control for a very large set of covariates and fixed effects and to use an instrumental variable strategy so that we can isolate the trade-creation effect of new immigrants. We are also able to qualify the effect of immigration on bilateral trade of homogeneous and differentiated goods, and its impact on the intensive and extensive margin of trade. Our findings support all the implications of the Chaney model showing that migration network indeed seems to decrease the fixed costs of trade. Finally by decomposing the effect across provinces and over time we find evidence that the elasticity of trade creation to new immigrant is larger once a critical mass has been reached.

Gender Needs Awareness and Gender Asymmetry: An Analysis of a Rural Women Survey in Mountainous Areas of South-eastern Spain

Achieving gender symmetry in rural areas is an important target for the European Union. There is no shortage of talent, ideas and energy amongst women in rural areas, nor are there legal constraints. However, a range of cultural obstacles still stand in the way of their full participation in rural development (the persistence of traditional views about women's and men's roles in society, etc.) particularly in the Mediterranean areas. The integration of equal opportunities will no longer be a choice, but it will be an obligation in the design and implementation of rural development programmes and projects. Some European initiatives (NOW, EQUAL, LEADER, etc.) have already been taken to improve rural women's opportunities to participate more actively in economic and public life. In this context, surveying and the data collection will be considered an important preliminary step in the implementation of gender symmetry-focused development policies. In this paper, after briefly discussing the different gender paradigms in rural development, some results of a survey conducted on 304 rural women living in mountainous rural areas of the province of Granada (Southern Spain) are presented. The position of rural women as regards employment, family, socio-cultural, institutional matters, etc., is described. Then women's perception and awareness regarding both practical and strategic gender needs in the area are analysed. Factors related to how women stand with respect to gender needs have been identified using the probit regression model. From the above results, some conclusions have finally been drawn that could be helpful for designing strategies to achieve a better level of gender symmetry in the region, focusing sustainable rural development on a "gender planning" approach.gender needs, rural development, gender asymmetry, Southeastern Spain, Community/Rural/Urban Development, Labor and Human Capital, O18, Q01, R13,

Factors Related to the Adoption of Good Agrarian Practices (GAP) in Plastic Covered Horticulture of Southeastern Spain

The adoption by farmers of Good Agrarian Practices (GAP), that favouring the environment and assure food quality and safety, is being a frequent fact. Considering the plastic covered horticulture, these kind of practices can be of different nature: use of organic fertiliser, made of crops rotations, use of recyclable plastic as greenhouse cover, good management of organic residuals (use of containers), recycling of plastic containers, etc. This paper, wich try to analyse the adoption of GAP by protected vegetable growers, is based on a survey carried out to 114 farmers in the southeast coastline of Spain, asking for the level of adoption of a set of GAP. From the information gathered on the suvey, an aggregated index of adoption has been performed, and the relationship between this index and some structural and managerial characteristics of the greenhouses, and some sociocultural variables of the growers (age, study, agrarian formation, etc) has been analysed, trying to identify factors related to adoption of GAP, which could probably help to design strategies for the increase of the level of GAP adoption in the system.Crop Production/Industries,

The National Immigrant Survey of Spain. A new data source for migration studies in Europe

Spain has recently become the destination for large numbers of international migrants and now ranks as a key focal point for international migration in Europe. Currently, approximately one in ten residents in Spain are foreigners, up more than tenfold from figures holding at the outset of this century. Migration has now become a major social and political issue in the country. In order to provide reliable data about migrants in Spain for researchers and policy makers, acting on a proposal of a research team working within the context of the Population and Society Research Network (GEPS), the Spanish Statistical Office has recently carried out an extremely ambitious survey of foreign-born persons currently living in Spain. In the course of the survey, nearly 15,500 persons were interviewed regarding a large array of issues pertaining to their migration experience. Important documentation, including the project report, the methodological specifications of the survey, and the anonymized micro data have recently been made available to the scientific community and to policy makers at the website of the Instituto Nacional de Estadística. The purpose of this paper is to describe this data source, its content, its methodological underpinnings, and the way the fieldwork and data cleaning were carried out. Examples of preliminary results will be presented so as to underscore the potential this survey affords for researchers everywhere.immigrant survey, international migration, migrant strategies, migration data set, migration studies, migratory networks, Spain

Rethinking regional competitiveness: Catalonia's international and interregional trade, 1995-2006

Studies of competitiveness tend to focus on a local economy's global interactions, particularly its international trade. But for countries that are at least mid-sized (such as Spain), interregional trade tends to be as large as or significantly larger than international trade. The case of Catalonia illustrates the importance of interregional flows in truly analyzing and devising strategies for a region's external competitiveness. Accounting for interregional trade changes and performing analyses of Catalonia's overall merchandise trade balance, which sectors generate external surpluses as opposed to deficits, and who Catalonia's key trading partners are, and the use of a gravity-model approach to estimate external border effects at the regional level for Catalonia and the rest of Spain, reveal significant variations by sector and by trading partner, generally higher external border effects for exports than imports, and declines in border effects over time - but with a discernible flattening in recent years.Border Effect; Gravity Model; Interregional trade; transport flows;

Adoption and diffusion of no tillage practices in Southern Spain olive groves

This paper analyses the process of adoption of no tillage in South-eastern Spain’s olive groves. Olive tree groves in South-eastern Spain’s mountainous areas are subject to a high risk of soil erosion, which is the main environmental problem for this crop, and have to incur in high costs of soil conservation. This results in a greater difficulty to comply with the practices required to benefit from both the single payment and agri-environmental schemes. In many high-steeped areas, farmers have opted for non-tillage practices as an alternative to other conservation practices. Using our own data from a survey carried out in 2006 among 215 olive tree farmers from the Granada Province in Southern Spain regarding the adoption of soil conservation and management practices, we model the diffusion process of no tillage practices using several specifications (logistic, Gompertz and exponential). We also estimate an ordered probit model to analyse which socio-economic and institutional factors determine the adoption of no tillage. Our results show that 90% of farmers in the area of study perform no tillage with either localized (21%) or no localized (69%) application of weedicides. The diffusion process of no tillage has been very intense since the middle nineties, and has been based on the interactions among farmers in the area of study rather than in external factors such as EU policies or extension services. Among other relevant factors that positively affect the adoption of no tillage practices in general, such as farm size and irrigation, the probability of a farmer adopting no tillage with non-localized application of weedicides increases when there is a relative that will continue with the farming activity, what causes the farmer to incorporate long term effects in his farming decisions, when the farmer is only a manager or when he bought the farm rather than inherited it (i.e. on more professionalized farms), and with his educational level. These results confirm some findings from previous studies in other nearby areas.Spanish olive groves, soil erosion, no tillage, Crop Production/Industries, Land Economics/Use,

Is the Border Effect an Artefact of Geographic Aggregation?

The existence of a large border effect is considered as one of the main puzzles of international macroeconomics. We show that the border effect is, to a large extent, an artefact of geographic concentration. In order to do so we combine international flows with intranational flows data characterised by a high geographic grid. At this fine grid, intranational flows are highly localised and dropping sharply with distance. The use of a small geographical unit of reference to measure intra-national bilateral trade flows allows to estimating correctly the negative impact of distance on shipments. When we use sector disaggregated export flows of 50 Spanish provinces in years 2000 and 2005 split into interprovincial and inter-national flows, we find that the border effect is reduced substantially and even becomes statistically not different from zero in some estimations.border effect, distance, interregional trade, international trade, Spanish provinces

The effects of immigration on the productive structure of Spanish regions

Immigrants have increased their participation in Spanish labour supply from less than 3 percent in 1996 to more than 13 percent in 2005. Using the factor proportion model of production, this paper analyses whether this labour supply shock has affected the industrial structure of Spanish regions. Our best specification suggests the need to include time varying region-specific effects to capture differences in technology and prices across regions. Our results confirm that, first, labour endowment differences across regions help to explain the pattern of industry specialisation across region. Second, immigrants and natives act as complementary factors in most industries. Third, the importance of factor endowment changes is relatively small compared to production technique changes and idiosyncratic industry changes in explaining the overall changes in industrial structure over 1996-2005, being only important in the case of Building, a sector where foreign workers represent an important share of its total labour force.

Price discrimination and market power in export markets: The case of the ceramic tile industry.

This paper combines the pricing-to-market equation and the residual demand elasticity equation to measure the extent of competition in the export markets of ceramic tiles, which has been dominated by Italian and Spanish producers since the late eighties. The findings show that the tile exporters enjoyed substantial market power over the period 1988-1998, and limited evidence that the export market has become more competitive over time.price discrimination, market power, export markets, ceramic tile industry