This article analyses the link between immigration and trade at the firm level, utilising information on the export activities
of 8,300 firms located in different Central European countries (Austria, Czech Republic, Slovakia and Hungary) for various
export markets as well as regional data on immigration. The empirical analysis suggests a strong, economically meaningful
and statistically significant impact of immigration on the export propensity (extensive margin), whereas the influence on
firms' export volumes (intensive margin) is much smaller. This leads to the conclusion that immigrants promote export activities
to their home countries mainly by reducing fixed costs of trade.
JEL-Codes:F10, F22, R12
Keywords:Exports; Migration; Regional Data; Trade
Research group:Regional Economics and Spatial Analysis