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Trade and Migration to New Zealand - WP 04/18

Appendix (continued)

Appendix Table 7 – The effect of including a real exchange rate variable in our benchmark export equation
Variable Exports (Model One) Exports (Model Two)
  Selection Trade Selection Trade
Migrant Stock 0.4269***(0.0761) 0.0871***(0.0213) 0.4206***(0.0781) 0.0975***(0.0225)
Zero Migrants 1.1483***(0.2011) -0.5003***(0.0644) 1.1714***(0.2036) -0.4805***(0.0627)
Foreign GDP 2.0985***(0.2175) 1.1976***(0.0723) 2.0441***(0.2211) 1.2134***(0.0757)
New Zealand GDP -0.7151(1.2615) 0.4716(0.4482) -0.4889(1.3037) 0.2399(0.4506)
World GDP 3.1171***(0.8422) -0.2805(0.2609) 2.745***(0.9304) -0.0895(0.2676)
Population -0.5536(0.4688) -0.9707***(0.1398) -0.69(0.4814) -0.6579***(0.1419)
Distance -2.8711***(0.3392) -3.2196***(0.0436) -2.87***(0.3408) -3.2148***(0.0447)
Non-English -0.5685***(0.1358) -1.287***(0.039) -0.5397***(0.1348) -0.4936***(0.037)
Real Exchange Rate --- --- -0.2476***(0.0956) 0.2947***(0.0275)
Average Migrant Stock -0.1883***(0.0718) -0.0032(0.0222) -0.1869**(0.0734) 0.0139(0.0237)
Average Foreign GDP -0.9222***(0.209) 0.0826(0.0756) -0.8845***(0.2123) -0.0322(0.0785)
Average Population -0.3696(0.4594) 0.6523***(0.1387) -0.206(0.4707) 0.1946(0.1411)
1995 Dummy -0.3966*(0.2075) 0.252***(0.063) -0.3552*(0.2074) 0.2219***(0.0621)
Log Likelihood -257.0576 -3278.7860 -256.5664 -3271.179
Observations 1726 1540 1726 1540
Countries 90 90 90 90

Notes – For definitions of the variables refer to Table 3.  A constant term and country specific effects are included in all regressions.  Dependent variables are in 1995 New Zealand dollars.  Three stars (***) indicates that the coefficient is significantly different from zero at the 1% significance level, two stars (**) indicates that it is significant at the 5% level, and one star (*) indicates that it is significant at the 10% level.

Appendix Table 8 – The effect of including a real exchange rate variable in our benchmark import equation
Variable Imports (Model One) Imports (Model Two)
  Selection Trade Selection Trade
Migrant Stock -0.185***(0.0702) 0.4348***(0.0321) -0.1931***(0.0714) 0.4518***(0.0331)
Zero Migrants -0.4762***(0.1499) -0.4628***(0.0984) -0.479***(0.1497) -0.4465***(0.1022)
Foreign GDP 0.736***(0.2129) 1.4569***(0.1004) 0.7237***(0.2119) 1.4099***(0.1038)
New Zealand GDP 3.6932***(1.1558) 2.1829***(0.6132) 3.9276***(1.1739) 2.1513***(0.6378)
World GDP -2.6928***(0.7932) -0.6653*(0.3398) -2.883***(0.8074) -0.4997(0.3527)
Population -0.0702(0.4991) -1.5854***(0.1657) -0.2419(0.5341) -1.532***(0.1998)
Distance -0.3891**(0.1748) -1.7056***(0.0535) -0.374**(0.1754) -1.8542***(0.0532)
Language 1.462***(0.1031) 0.0367(0.0508) 1.4576***(0.1035) -0.3919***(0.0493)
Real Exchange Rate --- --- -0.1637(0.1569) 0.1055***(0.0356)
Average Migrant Stock 0.6995***(0.0726) -0.0241(0.0335) 0.7145***(0.0737) -0.1471***(0.0342)
Average Foreign GDP -0.4656**(0.2191) -0.0822(0.102) -0.4626**(0.2187) -0.1131(0.1053)
Average Population -0.0988(0.5014) 1.1249***(0.166) 0.082(0.5406) 1.2223***(0.2018)
1995 Dummy 0.0572(0.1623) 0.0171(0.0849) 0.0694(0.1624) 0.0026(0.0862)
Log Likelihood -376.3119 -3211.8510 -376.1041 -3210.7710
Observations 1726 1378 1726 1378
Countries 90 89 90 89

Notes – For definitions of the variables refer to Table 3.  A constant term and country specific effects are included in all regressions.  Dependent variables are in 1995 New Zealand dollars.  Three stars (***) indicates that the coefficient is significantly different from zero at the 1% significance level, two stars (**) indicates that it is significant at the 5% level, and one star (*) indicates that it is significant at the 10% level.

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