MIGRATION AND KNOWLEDGE DIFFUSION: THE EFFECT OF RETURNING REFUGEES ON EXPORT PERFORMANCE IN THE FORMER YUGOSLAVIA

Dany Bahar, Andreas Hauptmann, Cem Özgüzel, Hillel Rapoport

Research output: Contribution to journalArticlepeer-review

3 Scopus citations

Abstract

During the early 1990s, Germany offered temporary protection to 700,000 Yugoslavian refugees fleeing war. By 2000, many had been repatriated. We exploit this natural experiment to investigate the role of returning migrants in boosting export performance upon their return. Using confidential German administrative data, we find that industries with 10% more returning refugees exhibit larger exports between the pre-and postwar periods by 1% to 1.6%. We use exogenous allocation rules for asylum seekers within Germany as an instrument to deal with endogeneity concerns. We show evidence pointing to productivity shifts as the main mechanism behind our results. Consistently, we find our results are driven by refugees in occupations more likely to transfer knowledge, technologies, and best practices.

Original languageEnglish
Pages (from-to)287-304
Number of pages18
JournalReview of Economics and Statistics
Volume106
Issue number2
DOIs
StatePublished - 19 Mar 2024
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2022 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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