The Effect of International Migration on Foreign Trade: An Empirical Analysis for Turkey

The aim of this study is to investigate the effect of international migration on foreign trade in Turkey. The study focuses on the trade of Turkey with 125 countries during the period from 2013 to 2016. For this purpose, the models estimated by using panel data method are divided into two groups: OECD member countries and developing countries. The variables in the models are determined by the augmented gravity model. There are two main results of the study. First, the effects of international migration on exports, imports and foreign trade are positive in the models for both OECD countries and developing countries. Second, the positive impact of international migration on imports is greater than the impact on exports in Turkey. This result indicates that the preference effect is more dominant than the network effect in Turkey. There is also a need for policies to encourage more qualified immigrants to come to Turkey.