Immigration, Emigration and Trade in Sweden : An Empirical Analysis (2000-2010)

Abstract: There has been much research regarding Trade Immigrant link for different countries, states and provinces which reveal that Immigration impacts bilateral Trade positively. In this study the Trade –Immigrant for Sweden for a period of 2000-2011 for 184 trading partners has been tested which shows that trade and Immigration have positive relationship. Using random effect model, with every 10% increase in Immigrants, there is 4.0% increase in imports and 4.4% increase in exports of Sweden from particular trading partner. In second hypothesis of the study Trade-Emigrant link for Sweden and its 185 trading partners has been checked in cross country sample for year 2010.To the best of my knowledge, this study is first to test the Trade-Emigrant link for Sweden. The results show that there is positive link between trade and Emigration from Sweden. An extended Gravity Model has been used in this study. Using ordinary least square method, with every 10% increase in Emigrants, there is 7.2% increase in imports and 4.3% increase in exports of Sweden for that particular trading partner.