Temporary migration and trade flows

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The WTO’s Marion Jansen and Roberta Piermartini latest in the World Economy:

Using a gravity approach in our empirical analysis, we find that temporary migration has a positive and significant effect on trade and that temporary migration tends to have a stronger and more significant effect on both imports and exports than permanent migration. Interestingly, the role of temporary migrants in reducing trade costs does not appear to be associated with their skills.

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