Immigration and Trade: The Case Study of Veneto Region in Italy

This paper investigates the relation between immigration and trade by focusing on Veneto region in Italy. The reference period is 2008-2015, interfering with the economic crisis, thus the results obtained can be time specific. The presence of immigrants in Veneto was constantly on the rise, also during the crisis, although at a lower pace compared to pre-crisis years. The question is which role could this play in ascertaining the stability, if not expansion, of trade relations between the region and the countries of immigrants' origin. The estimates of gravity model suggest a non-linear relationship between the number of immigrants and total exports from (imports to) the host-province to (from) the country of origin, the type of this relation moreover differs by sector of origin of trade. Higher presence of immigrants can potentially induce shifts in the structure of local economy, especially if it is highly dependent on international trade like in the case of Veneto.