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Felbermayr, Gabriel; Jung, Benjamin (2008): The pro-trade effect of the brain drain: Sorting out confounding factors. Hohenheimer Diskussionsbeiträge
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We sort out confounding factors in the empirical link between bilateral migration and trade. Using newly available panel data on developing countries’ diaspora to rich OECD nations in a theory-grounded gravity model, we uncover a robust, causal pro-trade effect. Moreover, we do not find evidence in favor of strong differences across education groups.

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