The nexus between cross-border migration and international trade: Evidence from Tanzania

Abstract

This paper attempted to unlock the conundrum of migration-trade relationship in  Tanzania, using the country’s migrant stock (diaspora) in the parts of the world. It also aimed to investigate how this effect, if at all exist, differs between developing and  developed countries. The augmented gravity model of trade has been employed to  investigate the relationships between the variables. With cross-sectional data of 2013 that incorporated Tanzanian diaspora in different economies, the paper revealed that  both Tanzania exports and trade volume are positively affected by the migrant stock in the countries of destination; and that the effect is highly pronounced in developed than developing nations. However, as the gravity model captures large number of variables, the paper disclosed interesting findings on the contribution of some variables to the  Tanzania’s trade volume and exports.

Keywords: Cross-border migration, International trade, Tanzania