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Immigrants are unsung heroes of global trade and value creation

Immigrants significantly enhance economic growth by driving innovation, improving trade value, and creating connections that strengthen global value chains in host nations.

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Bedassa Tadesse, University of Minnesota Duluth and Roger White, Whittier College

In nearly every country that hosts foreign-born citizens, immigration emerges as a lightning rod for controversy. The economic realities of immigration, however, are far more complex than the negative sound bites suggest.

Far from being a burden, as critics claim, immigrants play pivotal roles in driving innovation, enhancing productivity and fostering economic growth in their adopted countries. They also elevate their adopted and origin countries’ standings in global value chains, contributing to economic resilience.

We are economists who study global trade and migration, and our recent work reveals that immigrants contribute far more to the economic fabric of nations than previously understood.

By facilitating what’s known as “trade in value added,” or TiVA, immigrants play a crucial role in helping countries specialize their production, move up the value chain and significantly enhance trade sophistication.

Moving up the value chain means progressing from producing basic, low-value goods to more complex, higher-value products. This shift involves improving skills, technology and production techniques, allowing a country to capture more economic value and develop advanced industries.

So, what exactly is trade in value added, and why is it important?

In today’s global economy, products are rarely made entirely in one country. Instead, different stages of production occur across multiple nations. TiVA measures each country’s contribution to a final product, providing clearer insight into global value chains. For instance, while an iPhone may be assembled in China, its components come from various countries, each adding value.

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Measuring the effect on global value chains

Our study found that a 10% increase in immigrants from a particular country residing in one of the 38 Organization for Economic Cooperation and Development member states leads to a 2.08% increase in the value added from their home country that becomes embedded in their host country’s exports to the world.

This effect was strongest in the services sector, followed closely by agriculture and manufacturing.

To understand how this works, consider Indian software engineers in Silicon Valley. Their understanding of the U.S. tech industry and India’s IT sector can lead to partnerships. These partnerships lead to Indian firms providing specialized coding services for American tech giants. The result? Higher-value U.S. tech exports that incorporate Indian expertise. This perfectly illustrates how immigrants boost trade in value added.

Or take Chinese immigrants in Italy’s fashion industry. Their cultural knowledge might help Italian luxury brands tailor products for the Chinese market and connect Italian designers with highly skilled textile workers in China. The result? Italian fashion exports incorporate Chinese craftsmanship, elevating both countries’ global fashion value chain positions.

Our findings show that immigrants are pivotal bridges in global trade networks. They leverage their unique knowledge, skills and connections to strengthen economic bonds between nations. That’s in line with previous research showing the significant role immigrants play in fostering bilateral trade.

Why immigration matters in the global economy

In an era of increasing skepticism toward globalization and migration, understanding the positive economic impacts of immigration is crucial. Our current and previous research, and the findings from related studies, indicate that rather than “stealing jobs,” immigrants often create value and new economic opportunities that might not otherwise exist.

Immigrants bring diverse skills, knowledge and networks to their host countries that can enhance innovation, fill labor shortages and open new market opportunities. They often possess unique insights into their home country markets, helping host country firms navigate cultural nuances and business practices that might otherwise pose trade barriers. https://www.youtube.com/embed/RZKX-0SK41U?wmode=transparent&start=0

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For home countries, emigrants can serve as cultural ambassadors, creating awareness, showcasing products and services, and helping to integrate their homeland into global value chains. They may also contribute to knowledge transfer, investment flows and business connections that boost their home and host countries’ economic development.

Moreover, immigrants’ ability to enhance trade in value added suggests they play a role in moving countries up the economic value chain. Rather than simply facilitating trade in raw materials or essential manufactured goods, immigrants appear to boost trade in more sophisticated, higher-value products and services. This is crucial for economic development, as countries that position themselves higher in global value chains tend to see bigger benefits.

Rethinking immigration and trade policies

Our observations have important implications for both immigration and trade. For one, they suggest that restrictive immigration policies might have unintended consequences, hindering a country’s trade performance and position in global value chains. Countries that want to become more economically competitive might consider more open immigration policies.

What’s more, our research indicates that immigrants’ economic benefits extend beyond the often-cited labor-market and fiscal impacts – in other words, having more workers who pay more taxes.

The evidence suggests policymakers should take a more holistic view of immigration’s economic effects, considering its role in facilitating sophisticated international trade and value creation.

Our results also align with previous research highlighting the potential value of workforce diversity for businesses, particularly for firms engaged in international trade. Employees from diverse national backgrounds can bring valuable insights and connections that help their companies navigate global markets and value chains.

It’s worth noting that immigrants’ impact on trade in value added varies across countries and sectors. This suggests that rather than one-size-fits-all approaches, targeted policies might most effectively leverage immigration for economic benefit.

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Maximizing immigration’s positive impacts on trade and value chains also requires supportive policies and institutions that allow immigrants to use their skills and networks fully. These might include programs to assist with economic integration, language training, credential recognition and support for immigrant entrepreneurship.

A new perspective on immigration

As the global economy continues to evolve, with value chains becoming ever more complex and interconnected, the role of immigrants as facilitators of trade and value creation is likely to grow even more significant. Countries that recognize and leverage this potential stand to gain a competitive edge in the global marketplace.

Our research paints a picture of immigrants not as economic burdens but as valuable assets who enhance their host and home countries’ positions in the global economy. By making sophisticated trade linkages possible, and by boosting participation in global value chains, immigrants contribute to economic growth and development in ways that go far beyond conventional understanding.

As debates around immigration continue, it’s crucial to move beyond simplistic narratives and recognize the complex and often subtle ways that immigrants contribute to prosperity. In an interconnected world, immigrants aren’t just crossing borders – they are helping to weave the fabric of global trade and value creation.

Bedassa Tadesse, Professor of Economics, University of Minnesota Duluth and Roger White, Professor of Economics, Whittier College

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The Bridge is a section of the STM Daily News Blog meant for diversity, offering real news stories about bona fide community efforts to perpetuate a greater good. The purpose of The Bridge is to connect the divides that separate us, fostering understanding and empathy among different groups. By highlighting positive initiatives and inspirational actions, The Bridge aims to create a sense of unity and shared purpose. This section brings to light stories of individuals and organizations working tirelessly to promote inclusivity, equality, and mutual respect. Through these narratives, readers are encouraged to appreciate the richness of diverse perspectives and to participate actively in building stronger, more cohesive communities.

https://stmdailynews.com/the-bridge

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STM Daily News is a vibrant news blog dedicated to sharing the brighter side of human experiences. Emphasizing positive, uplifting stories, the site focuses on delivering inspiring, informative, and well-researched content. With a commitment to accurate, fair, and responsible journalism, STM Daily News aims to foster a community of readers passionate about positive change and engaged in meaningful conversations. Join the movement and explore stories that celebrate the positive impacts shaping our world.

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Lifestyle

National Recycling Day: Easy, Fun and Good for the Environment

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How to make every day recycling day

(Family Features) With so many mixed messages, recycling can feel confusing, but the truth is simpler than you might think. Recycling isn’t just for today – it’s a year-round commitment to a healthier planet.

In honor of National Recycling Day, consider these facts about recycling from the experts and tips to make a difference.

Recycling Is Real
Americans recycle more than 6 billion pounds of plastic every year. Among the plastics recycled, polyethylene terephthalate (PET) remains a responsible material choice. PET is the world’s most recycled plastic, with more than 1.8 billion pounds of PET bottles and containers recovered in the U.S. annually. Since PET bottles can be made from 100% post-consumer recycled content, each recycled bottle contributes to a circular economy where materials are continuously reused instead of wasted.

Recycling PET Plastic is Better for the Environment
Countless others from academics, researchers and industry experts show plastics, such as PET specifically, often have a lower environmental impact. In fact, glass bottles produce three times the greenhouse gas emissions compared to PET bottles, and making an aluminum can produces twice the emissions, according to Life Cycle Assessment studies. Producing PET also uses less energy and water and lowers acid rain and smog potential. Using and recycling PET is a more responsible, more eco-friendly choice than banning plastic outright.

Recycling Saves Energy
Recycling PET bottles requires less energy than producing new glass bottles or aluminum cans. Every PET bottle you recycle helps conserve resources and supports a more responsible production cycle.

Not All Plastics are Created Equal
PET is a superstar among plastics because it can be recycled repeatedly without losing strength or quality. It’s also an inexpensive, lightweight and shatter-resistant package that preserves and protects the food and medicine people place in their bodies.

Recycling Can be Easy
Recycling services can be accessible, with many communities across the U.S. offering easy ways to recycle. Today more than 73% of all U.S. households have access to recycling, according to The Recycling Partnership.

By staying informed, choosing packaging that’s easily recyclable and recycling consistently, you can help build a more sustainable future every day. Visit recyclecheck.org to find out where you can recycle in your community.

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5 Recycling Tips

  1. Know your plastics. Look for the No. 1 recycling symbol – inside three arrows forming a triangular shape – to identify polyethylene terephthalate (PET), helping ensure your recycling efforts are impactful.
  2. Recycle PET plastic packaging over bans. Choose products packaged in PET bottles where possible, as recycling PET reduces reliance on resource-heavy materials and greenhouse gas emissions.
  3. See recycling as energy conservation. PET bottle recycling uses significantly less energy compared to producing new glass bottles or aluminum cans.
  4. Think of recycling as an investment. Every PET container you recycle contributes to a circular economy and more sustainable world.
  5. Get involved within your community. Connect with local recycling programs and stay updated on your area’s recycling guidelines by visiting recyclecheck.org.

Photo courtesy of Shutterstock

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Amcor Rigid Packaging

Our Lifestyle section on STM Daily News is a hub of inspiration and practical information, offering a range of articles that touch on various aspects of daily life. From tips on family finances to guides for maintaining health and wellness, we strive to empower our readers with knowledge and resources to enhance their lifestyles. Whether you’re seeking outdoor activity ideas, fashion trends, or travel recommendations, our lifestyle section has got you covered. Visit us today at https://stmdailynews.com/category/lifestyle/ and embark on a journey of discovery and self-improvement.

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College Life

Campus diversity is becoming difficult to measure as students keep their race and ethnicity hidden on college applications

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More students are listing ‘race unknown’ on their college applications. Ariel Skelley/DigitalVision via Getty Images

Karly Sarita Ford, Penn State

When the Supreme Court struck down race-based admissions at American colleges and universities just over a year ago, many predicted U.S. campuses would become much less diverse. But in part due to students who decide not to disclose their race or ethnicity, coupled with universities’ selective use of statistics, it is not clear how much the decision has affected diversity on campus.

As higher education institutions begin reporting the racial makeup of the class of 2028 – the first to be affected by the 2023 decision – the data is hard to interpret, confusing and inconclusive.

As a sociologist who has studied how institutions of higher education collect and report data on race and ethnicity, I have identified some factors that contribute to this lack of clarity.

Students don’t identify with choices given

Some students may not select a racial or ethnic category because they don’t believe any of the categories really fit. For example, before multiracial students could select “one or more,” an option that became widely available in 2010, they were more likely to decline to identify their race or ethnicity. Some even boycotted checkboxes entirely.

Other students don’t view their race as important: 67% of the students who choose “race and ethnicity unknown” are white. Of these students, 33% say race and ethnicity are not a relevant part of their identity, a researcher found in 2008.

The number of students who don’t respond to questions about race or ethnicity – and are listed in the “race unknown” category – is increasing. At Harvard University, for example, the percentage of “race-unknown” undergrad students doubled from 2023 to 2024.

As the number of “race unknown” students grows, it not only becomes harder to determine a student body’s ethnic and racial diversity but also the impact of the ban on race-conscious admissions.

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Five college students in blue caps and gowns sit on a bench on campus.
Some students may not view race as an important part of their identity. John Giustina/The Image Bank via Getty Images

Fearing discrimination, students don’t disclose race

Some students believe their race or ethnicity will harm their chances of admission.

This is particularly true at many selective institutions, which have higher nonresponse rates than less selective institutions, about 4% compared with 1% to 2%.

My research shows that students are even more likely to pass on identifying race or ethnicity at selective law schools, where race and ethnicity could be used among a variety of criteria for admissions before the Supreme Court ruled against that practice. An average of 8% of students at those schools chose not to identify, compared with 4% at less selective law schools.

‘We’re very diverse’: University decisions distort statistics

What a university chooses to report will also affect the student body demographic data the public sees. Harvard, for example, does not report its proportion of white students.

Some institutions use statistics strategically to appear more diverse than they are. These strategies include counting multiracial students multiple times – once for each race selected – or including international students as a separate category in demographic pie charts. The greater the number of different-colored slices on the chart, the more demographically “diverse” an institution appears to be.

Impact of Supreme Court ruling: Clearer picture coming soon

While universities may not all report their student demographics the same way in their own materials, they all have to report it the same way to the federal government – namely, to its Integrated Post Secondary Education Data System, better known as IPEDS. The next IPEDS report on characteristics for the 2024 enrollment class is expected to be released in spring 2025. Once that data is available, a better picture of how the Supreme Court’s decision has affected diversity in college enrollment should emerge.

That clearer picture might not last long. In 2027, the federal government will require colleges and universities to make changes to how they report student race and ethnicity. Among the changes is the addition of a Middle Eastern and North African category. Under the current standard, Middle Eastern and North African students are counted as white. As a result, white enrollment at some colleges and universities will appear to decline after 2027.

The new standards will also change the way universities treat Hispanic or Latino ethnicity on enrollment forms. Today, if students self-identify as Hispanic and white, they will be categorized as Hispanic. If students select Hispanic and white in 2027, they will be categorized as multiracial. The revised categories will muddy the impact of the Supreme Court’s decision. A drop in the number of Hispanic students reported could be due to the court’s ruling. Or it may result from the new way students will be counted.

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Until universities and colleges adjust to the new guidelines about collecting and reporting race – and as long as students decline to provide their racial identities – the full effect of banning consideration of race in college admissions will remain a cloudy picture at best.

Karly Sarita Ford, Associate Professor of Education and Sociology, Penn State

This article is republished from The Conversation under a Creative Commons license. Read the original article.

The Bridge is a section of the STM Daily News Blog meant for diversity, offering real news stories about bona fide community efforts to perpetuate a greater good. The purpose of The Bridge is to connect the divides that separate us, fostering understanding and empathy among different groups. By highlighting positive initiatives and inspirational actions, The Bridge aims to create a sense of unity and shared purpose. This section brings to light stories of individuals and organizations working tirelessly to promote inclusivity, equality, and mutual respect. Through these narratives, readers are encouraged to appreciate the richness of diverse perspectives and to participate actively in building stronger, more cohesive communities.

https://stmdailynews.com/the-bridge

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Populist podcasters love RFK, Jr., and he took the same left-right turn toward Trump as they did

Robert F. Kennedy Jr., once a Democrat, endorsed Trump and aims to lead Health and Human Services, symbolizing a notable shift in populist political dynamics.

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Robert F. Kennedy Jr., a one-time Democrat, endorsed Trump on Aug. 23, 2024, after ending his independent presidential bid. AP Photo/Evan Vucci

Rachel Meade, Boston University

Robert F. Kennedy Jr. is Donald Trump’s pick to lead the Department of Health and Human Services in the new administration. The idea of Trump, a Republican, appointing Kennedy to his cabinet would have been surprising just a few months ago.

After all, Kennedy began his presidential run last year as a Democrat and is the scion of a Democratic dynasty. Nephew of former President John F. Kennedy and the son of former U.S. Attorney General Robert F. Kennedy, Kennedy spent most of his career as a lawyer representing environmental groups that sued polluting corporations and municipalities.

Yet Kennedy, 70, has long held positions that put him at odds with the Democratic mainstream. He pushes public health misinformation around vaccines and HIV/AIDS, opposes U.S. military involvement in foreign wars, including in Ukraine, and claims that the CIA assassinated his uncle.

Kennedy’s ideologically mixed politics are hard to categorize in traditional left-right terms.

My political science research finds that Kennedy’s journey from left-aligned skepticism into Trumpism is part of a broader trend of contemporary left-to-right populist transformations happening across the United States.

Rise of the populist alternative media

Populism is a political story that presents the good “people” of a nation as in a struggle against its “elites,” who have corrupted democratic institutions to further their own selfish interests. It cuts across the ideological spectrum, often combining left-wing economic critiques with right-wing cultural ones.

Based on my research, I find that Kennedy uses a populist style of speech that matches the rhetoric of today’s online alternative media, also known as the “alternative influence network.”

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If populism cuts across the ideological spectrum, so does the alternative media.

This network of politically diverse independent podcasters, YouTube hosts and other creators connects with young, politically disaffected audiences by mixing politics with comedy and pop culture, and presenting themselves as embattled defenders of free thinking – in opposition to mainstream media and mainstream parties.

Top-rated shows include “Breaking Points,” “Stay Free with Russell Brand,” “The Joe Rogan Experience,” The Culture War with Tim Pool“ and ”This Past Weekend w/Theo Von.“

While many of these shows have been around since the 2010s, the network expanded throughout the Trump era. Their popularity skyrocketed during the COVID-19 pandemic, when public distrust in government, anger over pandemic restrictions and vaccine skepticism surged.

These shows hosted Kennedy frequently throughout his presidential run in 2023 and 2024. He was particularly focused on a class of male-dominated alternative shows sometimes called the ”manosphere.“

Kennedy finds his audience

I analyzed a set of Kennedy’s appearances for this story. Both Kennedy and alternative media hosts claim to care about “the real issues” facing Americans such as war, corporate and political malfeasance and economic troubles. They condemn the “mainstream” for promoting frivolous “culture war” topics related to race and identity politics.

Kennedy and the alternative media hosts also combine left and right arguments in a typically populist way. They claim that corporations control the government and that liberals and corporations censor free speech.

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For example, on a May 2024 episode of “Stay Free with Russell Brand,” Brand asserted that corrupt institutions are backed by the “deep state.” He asked Kennedy how he would fight these powerful interests.

“The major agencies of government have all been captured by the industries they’re supposed to regulate and act as sock puppets serving the mercantile interests of these big corporations,” responded Kennedy. “I have a particular ability to unravel that because I’ve litigated against so many of these agencies.”

My research found that Kennedy often bonded with his alternative media hosts over his perception that liberal media sources – allegedly controlled by the Democratic National Committee or the CIA – were censoring his campaign.

Like Kennedy, alternative media hosts often identify as former or disaffected Democrats. Many used to work at mainstream left news sites, where they say they experienced censorship.

‘This little island of free speech’

In a June 2023 episode of “The Joe Rogan Experience,” Rogan explained that he no longer identifies as a liberal because of the “orthodoxy it preaches” around issues like vaccines. He then cited YouTube’s removal of some of Kennedy’s vaccine-related videos for violating its COVID-19 misinformation policy.

Kennedy had just spent 90 minutes outlining his journey toward vaccine skepticism, which started with meeting a mother who believed vaccines caused her son’s autism.

“If a woman tells you something about her child, you should listen,” he said.

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Kennedy also described being convinced by a set of studies that public health officials had ignored.

“Trust the experts is not a function of science, it’s a function of religion,” he said. “I’ve been litigating 40 years; there’s experts on both sides.”

Afterward, he thanked Rogan for maintaining “this little island of free speech in a desert of suppression and of critical thinking.”

Kennedy reiterated this point in the Aug. 23, 2024, speech that ended his presidential campaign. The “alternative media” had kept his ideas alive, he said, while the mainstream networks had shut him out despite his historically high third-party poll numbers of 15% to 20%.

“The DNC-allied mainstream media networks maintained a near-perfect embargo on interviews with me,” Kennedy said.

Speaking directly to the reporters in the room, he added, “Your institutions and media made themselves government mouthpieces and stenographers for the organs of power.”

Kennedy ended that speech by endorsing Trump for president, a move that reportedly prompted Trump to promise his former rival a role overseeing health policy in his administration.

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Left-to-right pipeline

Trust in a range of U.S. institutions is at historical lows. Americans on both the right and the left are skeptical of power. As the 2024 election results showed, they crave radical change.

Alternative media hosts tapped into this desire, helping to push some disaffected listeners rightward. The same left-to-right pipeline landed Kennedy in Trump’s orbit.

Trump and his allies were adept at harnessing the power of the alternative media ecosystem. During the 2024 presidential campaign, Trump appeared on male-centric shows like “The Joe Rogan Experience,” and “This Past Weekend w/Theo Von,” and many media critics see this as a big factor in Trump’s success winning over young, male voters. Both Rogan and Von were personally thanked by name at Trump’s victory celebration.

Trump and his inner circle even form part of the alternative media themselves. Trump founded the alternative social media platform Truth Social and his adviser Steve Bannon hosts an influential podcast called the “War Room” on another MAGA alternative media platform, Rumble. Known for its fiery populist rhetoric, the “War Room” broadcasts live for an astonishing 22 hours a week.

Bannon, who was briefly jailed for contempt of Congress in mid-2024 and now faces trial in New York for financial fraud, used his show as a soapbox to promote Trump’s candidacy. He also praised Kennedy on the air, boosting the Democrat’s profile among his far-right listeners.

For Kennedy, aisle-crossing is part of the solution to partisan polarization.

“Step outside the culture war!” he tweeted in July 2024. “Step outside the politics of hating the other side!”

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This story has been updated to reflect the outcome of the 2024 election and Kennedy’s likely nomination to Trump’s cabinet. It was originally published on Oct. 29, 2024.

Rachel Meade, Lecturer of Political Science, Boston University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

STM Daily News is a vibrant news blog dedicated to sharing the brighter side of human experiences. Emphasizing positive, uplifting stories, the site focuses on delivering inspiring, informative, and well-researched content. With a commitment to accurate, fair, and responsible journalism, STM Daily News aims to foster a community of readers passionate about positive change and engaged in meaningful conversations. Join the movement and explore stories that celebrate the positive impacts shaping our world.

https://stmdailynews.com/

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