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The purpose of this paper is to study how proximity affects the trade-migration link. By focusing on two case studies, France and Egypt, the authors explore if migrants promote and help to deal with market heterogeneity in international markets. Using an ethnic network approach the authors also test for interactions between the characteristics of migrants and proximity issues.

The paper builds on two case studies to illustrate the main working hypotheses. The main framework is that of ethnic networks, proximity ties, and market heterogeneity. Static and dynamic panel data methods are employed when estimating extended gravity trade equations. The authors account for country-pair fixed effects and instrument by lagged stocks of migrants, in order to deal with bilateral commonalities and endogeneity issues in the estimation procedure.

The paper provides evidence on how proximity enhances trade. Additional trade effects are found for countries sharing closer ties. Networks of migrants appear to help firms to deal with fixed trade costs, also generating some market heterogeneity that at the end influences the trade-migration linkage. Characteristics of migrants also seem to matter, interacting with proximity issues, and resulting in specific trade effects.

Proximity issues seem to matter in the trade creation effects of networks of migrants. In this way integration processes between countries would be showing some positive externalities in the side of trade flows. Characteristics of emigrants should be taken into account when defining migratory policies, mainly for the education and assimilation issues.

The paper get deeper insights in some emerging issues in the trade-migration literature by focusing in two relevant case studies.

The European Union (EU) and its European neighbourhood are mutually dependent. In the next decades, the EU will need to import foreign labour in response to different challenges. The geographical proximity, economic, cultural and historical links with EU Neighbouring countries make them an important potential source of labour force and, moreover, they are the main countries of origin and transit of legal and illegal migration towards Europe. The purpose of this paper is to analyse the impact of different EU policies on future migration flows, and to evaluate the current effect of immigration from neighbouring countries on EU labour markets.

The papers in this Special Issue combine different macro and micro approaches, and have been produced in the context of the seventhth Framework Programme EU-funded SEARCH project. The main objective of this project is to strengthen the integration process by analysing current and future trends in several areas covering trade, migration or institutional reforms among others. The first three papers focus on the analysis of the determinants of migration flows, the next four are related to immigrants’ integration and the last one explores the trade-migration link.

The evidence gathered in this Special Issue is of interest to academics and policy makers. For instance, at the aggregate level there is a need to coordinate EU migration policies with reforms in other areas such as labour market institutions or welfare systems, but also to take into account developments in immigrants’ countries of origin. Policy should focus on assessing the skills levels of immigrants and providing assistance in transferring their skills, but also on providing better information of the current needs in the EU labour markets.

The Special Issue adds to the literature on the determinants of migration and on the integration of immigrants into EU labour markets. These papers contribute to a better understanding of the complex link between the EU and the Neighbouring countries. They also leave open many questions that should clearly stimulate future research.

This paper examines the inter‐relationship between migration of persons and international trade in goods and services. Trade and immigration policies, their effects and inter‐dependence are examined from a variety of viewpoints across several disciplines, and an attempt is made to offer the outline of a synthesis. The relationship between trade and migration policies is of immediate relevance to policy‐makers. Unless such policies were coordinated, lawmakers might find that the desired effects of say, immigration policy might well be undone by independently chosen trade policy and conversely.

This study aims to consider how migrants may act as channel of diffusion of knowledge which contributes to the dynamics of trade and comparative advantages of EU and MENA countries for the period 1990–2015.

Adopting an IV approach and a gravity framework to instrument for migration, the authors document how variations in stocks of migrants coming from (in) countries that are already competitive exporters of a given product impact on the probability that the destination (home) country starts to export competitively new products or succeed in exporting more intensively.

Controlling for potential confounding factors which can be correlated to knowledge flows and productivity shifts, the authors find trade-promoting effects via migration flows (mostly immigration) between the two areas, testing our hypotheses by different technology classes of products and different specifications.

The contribution of this work to the literature is threefold. First, by providing evidence on international knowledge diffusion induced by migration flows between MENA and EU regions, like no other work before, the authors document the effects of migration on trade and comparative advantages. Second, unlike standard literature on migration-trade link, the authors focus more on long-term structural changes in comparative advantages than on trade volumes. Third, we exploit how the effect of migration on margins of trade varies according to different types of goods, classified by technological level.

The purpose of this paper is to study the migration of the Indian diaspora to Canada and the USA and its role in fostering trade and investment between them using its transnational social networks.

This study was based on interviews with 25 Indian immigrants, 13 in Canada and 12 in the USA.

The social networks that immigrants had in both their country of residence (COR) and country of origin (COO) act as conduits of trade and investment between the two. The Indian diaspora further facilitates economic engagement between the COO and COR by running cross‐border businesses, introducing Indian products and brands in the COR, introducing the Indian culture and helping non‐Indians to invest in India. Within the COO, the diaspora's social networks often helped Indians in India connect with markets, suppliers and potential business partners in the COR.

The sample size was 25 people and was restricted to managers, executives and entrepreneurs of Indian origin, since it was assumed that these people are the most likely to drive trade and investment between the COO and COR.

For policy makers in COOs, the paper stresses the importance of maintaining social and economic ties to the diaspora, who can often bring important trade and investment related benefits to the COO. For CORs, the paper reveals the importance of utilizing the transnational networks that the diaspora possess, that can be beneficial for the COR companies in entering new markets. Leveraging both the human and social capital of the diaspora in a mutually beneficial way is one of the biggest challenges for policy makers in both the COO and the COR.

The paper shows that within the COR, the local Indian community provides social and moral, rather than financial support to newly arrived Indian immigrants.

The paper explains the linkage between diasporas, trade and migration by focusing on the reasons for diaspora immigration, the social networks that the diaspora has, and the diaspora activities in the COR. It contributes to the literature on social networks by pointing out the importance of the diaspora's transnational social networks in both the COR and COO in driving trade and investment between them. It also adds to the brain circulation literature through its finding that pull factors, rather than push factors, were responsible for the vast majority of Indian immigration to the USA and Canada, and that by making diaspora‐friendly policies, brain circulation will be made easier, and this can help both the COO and COR in the long run.

Awareness and testing of ethnic cuisine have increased in the past decades as a consequence of the growing international trade, migration, tourism and globalisation. This article aims to focus on the attitude and behaviour of Belgians towards Latin‐American ethnic foods, and of Hispanics living in Belgium towards mainstream Belgian food.

The role of socio‐demographic characteristics, food neophobia, and degree of acculturation or openness on food preference and choice among these two population groups is analysed. A survey with 119 Belgian and 127 Hispanic participants was performed. Data analysis deals with descriptive analyses and statistical validation of the perceived associations by means of chi‐square, t‐test, ANOVA, correlations, and stepwise multiple regression.

The overall opinion and degree of satisfaction of the Belgian sample towards ethnic food were favourable. Latin‐American food consumption and attitude of Belgians are negatively correlated with food neophobia, which is significantly higher among urban and 55+ aged consumers, and positively correlated with openness to new cultures. Taste and appearance were key attributes that determined Belgians' preference for ethnic foods. Hispanics' general perception towards Belgian mainstream food was favourable as well, although they considered their own food as being better in taste. Barriers to maintain Latin‐American food habits are availability and time constraints. Hispanics' adoption of traditional Belgian cuisine is positively correlated with time of residence in Belgium and negatively correlated with maintenance of native social interaction and language use. Food neophobia does not emerge as a determinant of Hispanics' dietary acculturation to mainstream Belgian food.

Data are collected from a relatively small convenience sample, which limits generalisation of the findings beyond the sample characteristics, which renders the findings exploratory rather than conclusive.

This paper covers important, not well‐explored and previously neglected research subjects, namely attitude, perceptions and behaviour towards ethnic food and food consumption among ethnic minorities in the increasingly globalised food market. The main contribution pertains to simultaneously investigating the role of socio‐demographic, acculturation and food neophobia on food consumption decisions.

The purpose of this paper is to document the role of diaspora networks in enhancing cross-border flows of goods, capital, and knowledge, eventually contributing to efficient specialization, investment, and productivity growth in the migrants’ home-countries. Particular attention is paid to the role of skilled migrants, and to information imperfections reduction as the main channel for the documented effects.

This paper reviews a growing literature on migration and globalization, focussing on its relevance for developing and emerging economies.

In reviewing the literature on the effects of migration on other dimensions of international economic interactions, this paper shows that migrants contribute to the integration of their country into the world market, which can be particularly important for economic growth in developing countries.

It documents the role of diaspora networks in enhancing cross-border flows of goods, capital, and knowledge, eventually contributing to efficient specialization, investment, and productivity growth in the migrants’ home-countries. Particular attention is paid to the role of skilled migrants, and to information imperfections reduction as the main channel for the documented effects.

The purpose of this study is to propose and test a model on the impact of diversity over performance using a Portuguese national wide comprehensively matched employee–employer dataset of small businesses.

The study uses structural equation modeling to analyze the relationships between variables. The study addresses the impact of top managers and employees' diversity on firm performance considering two dimensions of diversity: knowledge diversity and social diversity.

The study provides a clear understanding of how workforce diversity affects performance differently at the two hierarchical levels. Both employees' diversities have stronger relations to performance than the diversity of top managers. Results point out to idiosyncratic aspects of services firms' dynamics that should be further explored.

The study presents some limitations, since it uses data from a single country and the dataset provides limited variables.

The study offers evidence on the effects of diversity in small businesses alerting managers to acknowledge such influence when recruiting, selecting and training. With regard to services firms, managers should pay close attention to negative impacts of diversity over performance.

Never before to the authors' knowledge the managers' level diversity and employees' level diversity (considering two dimensions each) effect on performance have been addressed in a single national wide study.

The paper aims to provide an updated broad assessment of the environment for foreign direct investment (FDI) in light of the referendum vote in the UK to exit the European Union (Brexit), the election of Donald Trump as President of the USA and growing nationalist movements in Europe.

The paper uses an essay format to set out the main issues linking recent political developments to FDI. It reviews some relevant empirical literature to assess the identified linkages.

It seems reasonable to argue that there will be a reduction in FDI intensity on a global basis over the foreseeable future. It is also likely that the nature of FDI will move more toward being a substitute rather than a complement to trade.

The essay is original and valuable in the sense of offering a contemporary assessment of how important the recent political events may affect the FDI process.