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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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The Controversy Surrounding the Jackie Robinson Biography at the U.S. Naval Academy

The Trump administration’s push to ban Jackie Robinson’s biography from the U.S. Naval Academy Library highlights tensions over diversity narratives in education, sparking controversy and raising concerns about historical representation amid ongoing political divisiveness.

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Jackie Robinson, first baseman with the Brooklyn Dodgers, circa 1949.

In an alarming move reflecting ongoing tensions over diverse narratives in education and public discourse, the Trump administration is reportedly pushing to ban a biography of Jackie Robinson from the Nimitz Library at the U.S. Naval Academy. This follows a week of controversy sparked by the temporary removal and subsequent restoration of an article on Robinson’s Army service from the Pentagon’s website.

According to a report from The New York Times, Defense Secretary Pete Hegseth has directed the Naval Academy to review its library collection for works that embody themes of diversity, equity, and inclusion. The biography of Robinson, alongside around 900 other titles—including Martin Luther King Jr.’s autobiography and “Einstein on Race and Racism”—has been flagged for removal under this directive.

Cmdr. Tim Hawkins, a spokesman for the Naval Academy, stated, “The U.S. Naval Academy is fully committed to executing and implementing all directives outlined in executive orders issued by the president and is currently reviewing the Nimitz Library collection to ensure compliance. The Navy is carrying out these actions with utmost professionalism, efficiency, and in alignment with national security objectives.”

With Hegseth scheduled to visit the Academy soon, it remains uncertain whether these controversial titles will be removed from the library before his arrival. The issue has sparked substantial outcry, particularly in light of the administration’s recent criticism over removing articles that celebrate influential figures in U.S. history, like Robinson and the Navajo code talkers.

In a discussion prompted by ESPN’s Jeff Passan, Pentagon press secretary John Ullyot reiterated the administration’s stance against diversity initiatives, indicating that some content may have been removed inadvertently. His comments drew significant backlash, leading to a follow-up statement emphasizing “patriotism and dedication to the warfighting mission” rather than racial or ethnic identities.

Robinson, a second lieutenant in the Army from 1942 to 1944, served with the 761st Tank Battalion, the first Black tank unit to see combat in World War II. His court-martial for refusing to adhere to a racist bus policy only underscores his enduring struggle against racial injustice, paving the way for his groundbreaking success in Major League Baseball as he broke the color barrier.

The Los Angeles Dodgers, Robinson’s team for a decade, are scheduled to visit President Trump at the White House to celebrate their 2024 World Series title this April, coinciding with Jackie Robinson Day. This timing juxtaposes their celebration of his legacy against the backdrop of an administration taking steps to diminish recognition of such key figures in American history.

As this situation unfolds, it raises critical questions about the role of educational institutions, historical representation, and the importance of equitable narratives in our national dialogue. In today’s divided political landscape, the removal of influential and diverse voices from public access can serve not just as a reflection of current priorities but also as a forewarning about the future of discourse surrounding diversity and inclusion in America.

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Related article: https://sports.yahoo.com/mlb/article/trump-administration-reportedly-moves-to-ban-jackie-robinson-biography-from-naval-academy-library-235013259.html

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The Bridge

‘Everyday discrimination’ linked to increased anxiety and depression across all groups of Americans

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Everyday discrimination happens to all races and genders. FG Trade Latin/E+ via Getty Images

Monica Wang, Boston University

People who most frequently encounter everyday discrimination – those subtle snubs and slights of everyday life – are more likely to suffer from anxiety and depression.

What’s more, that finding remains true no matter the person’s race, gender, age, education, income, weight, language, immigration status or where they live.

These are the key takeaways from our recent study, published in JAMA Network Open.

Everyday discrimination refers to the routine ways people are treated unfairly because of characteristics such as skin color, perceived background or general appearance.

Generally, it means disrespectful treatment: waiting longer than others for help at a store, having your ideas dismissed without consideration at work, or hearing rude comments about your identity.

Although marginalized groups endure everyday discrimination most often, our study indicates that this is a widespread issue affecting people of all races and backgrounds.

Two unhappy-looking women, with eyes cast downward, look forlornly at the floor.
Everyday discrimination can affect both physical and mental health. FG Trade Latin/E+ via Getty Images

I’m a professor who specializes in community health. My team and I analyzed data from the 2023 National Health Interview Survey, which included a weighted sample of nearly 30,000 U.S. adults, adjusted to accurately reflect more than 258 million people – approximately 75% of the country.

Along with reporting frequency of everyday discrimination, participants completed clinical screenings for depression and anxiety.

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The results were striking: Nearly 56% of participants experienced at least occasional everyday discrimination, with 3.6% having “high levels,” meaning they faced discrimination most frequently – at least monthly and often weekly.

High levels were most prevalent among Black adults, at 8.6%. Multiracial respondents were next with 6.4%. Hispanics and white participants were at about 3%, Asians just over 2%.

Women and immigrants, people with disabilities and those who are overweight, obese or struggling with food insecurity also reported higher levels.

When compared with those reporting no discrimination, participants with high levels had five times the odds of screening positive for either depression or anxiety, and nearly nine times the odds of screening positive for both.

As discrimination increased, the increase in screening positive for depression, anxiety or both varied by race, with a more noticeable rise among groups that are often overlooked in these discussions – white, Asian and multiracial adults.

This doesn’t mean discrimination is less harmful for Black, Hispanic/Latino or other racial and ethnic groups. One possible reason for our study’s findings may be that groups that have long endured structural discrimination may have developed more ways over time to cope with it.

Why it matters

At some point, all of us experience unfair treatment due to our personal traits. But this type of discrimination isn’t just unpleasant. Our study shows it has real consequences for health.

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Along with depression and anxiety, discrimination creates chronic stress, leading to increased risk for hypertension, heart disease, impaired brain functioning, accelerated aging and premature death.

For some, everyday discrimination may emerge at different times in life. This can happen to people as they get older or when they become ill.

But for others, it is a constant. This includes people living in marginalized communities, people of color, those socioeconomically disadvantaged or with disabilities, or those who identify as LGBTQ+. https://www.youtube.com/embed/dOUSBLPQ5Sk?wmode=transparent&start=0 Ageism is one of many forms of everyday discrimination.

What other research is being done

Multiracial people are uniquely challenged because they navigate multiple racial identities. This often leads to feelings of isolation, which increases mental health risks.

White adults, though less frequently exposed to racial discrimination, still face mistreatment, particularly if they have lower incomes, limited education or working-class backgrounds. In recent years, white people have perceived rising levels of discrimination against their own group.

People of Asian descent are vulnerable to societal pressures and harmful stereotypes, which spiked during the COVID-19 pandemic.

When factors are combined – for example, adding financial insecurity or immigration status to racism – compounded health challenges arise.

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What’s next

Understanding how discrimination affects health for all can lead to policies and programs targeting root causes of mental health disparities and the rising rates of depression and anxiety.

Discrimination isn’t just a Black versus white issue. It’s a public health crisis affecting all Americans. Acknowledging its harmful health effects is a first step.

The Research Brief is a short take on interesting academic work.

Monica Wang, Associate Professor of Public Health, Boston University

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

 

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Community

Celebrate Mom and Pop Business Owners Day: Support Your Local Heroes!

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Photo by ELEVATE on Pexels.com

Celebrating Mom and Pop Businesses

As we mark April 29th on our calendars, it’s time to shine a spotlight on the backbone of our communities—mom and pop businesses! This special day, known as Mom and Pop Business Owners Day, is dedicated to honoring the hard work and unwavering contributions of small, family-owned establishments. Often run by couples or family units, these businesses embody the spirit of entrepreneurship and bring something truly unique to the marketplace.

The Heart of the Community

Mom and pop shops are more than just a place to buy goods or services; they are the heart and soul of our neighborhoods. These businesses foster community connections, create jobs, and drive local economies. From cozy coffee shops to quaint bookstores, family-run restaurants to artisanal bakeries, every mom and pop business offers a personalized touch that you simply can’t find at large corporate retailers.

Why Support Local?

  1. Personalized Service: When you walk into a local business, you’re often greeted by a familiar face—a friendly owner or staff member who remembers your name and preferences. This level of personal attention creates a warm and welcoming atmosphere that enhances your shopping experience.
  2. Unique Products: Local businesses often offer one-of-a-kind items that reflect their distinct flavor and style. By supporting them, you can find unique gifts or treasures that you won’t see in mainstream stores.
  3. Economic Impact: Shopping locally ensures that a larger portion of your money stays within your community. This helps create jobs, support local suppliers, and strengthen the overall economy.
  4. Community Connection: Local businesses sponsor community events, support local charities, and contribute to the vibrancy of neighborhoods. By shopping locally, you’re not just purchasing a product; you’re investing in your community’s future.

Join the Celebration!

This Mom and Pop Business Owners Day, let’s take a moment to appreciate those hard-working entrepreneurs who pour their heart and soul into their craft. Here are some simple ways you can celebrate:

  • Visit Local Stores: Take the time to explore the brick-and-mortar shops in your area. Whether it’s a beloved bakery, a charming boutique, or a family-owned restaurant, make it a point to show your support.
  • Shop Online: Many mom and pop businesses also have an online presence, allowing you to shop from the comfort of your home. Browse their websites and consider making a purchase to help sustain their efforts. Every order counts!
  • Share Your Experience: Social media is a powerful tool for small businesses. Share a photo or a story highlighting your experience at a local shop or restaurant. Tag them and encourage your friends and family to check them out too!
  • Spread the Word: Word-of-mouth is a powerful form of advertising. Tell your friends about your favorite local spots and encourage them to support these businesses as well.

A Final Note of Encouragement

In a world where online shopping and big-box stores dominate, let’s not forget the charm and heart that small, family-owned businesses bring to our lives. Mom and Pop Business Owners Day is a perfect occasion to celebrate and support those who take the leap to turn their dreams into reality. So, whether you’re visiting a cozy store down the street or browsing an online shop, every small act of support matters.

Let’s come together this April 29th to lift up our local heroes and keep our communities thriving! Thank you for your commitment to supporting the mom and pop businesses that make our neighborhoods special! 🌟

Related Link:

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https://www.nationaldaycalendar.com/national-day/national-mom-and-pop-business-owners-day-march-29

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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