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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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Last Updated on March 7, 2026 by Daily News Staff

immigrants

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.

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.

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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

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.

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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.

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.

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Urbanism

LA Metro’s D Line Extension Phase 1 Officially Opens, Bringing Subway Service to Mid-Wilshire and Beverly Hills

LA Metro’s D Line Extension: LA Metro officially opens Phase 1 of the D Line Subway Extension, connecting Downtown Los Angeles, Mid-Wilshire, and Beverly Hills with three new underground stations.

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The future of transportation in Los Angeles has officially arrived.

LA Metro’s D Line Extension
Image: LA Metro

LA Metro’s D Line Extension Phase 1 Officially Opens

The Los Angeles County Metropolitan Transportation Authority (Metro) officially opened Section 1 of the long-awaited D Line Subway Extension on May 8, 2026, expanding underground rail service westward through the historic Mid-Wilshire corridor and into Beverly Hills.

The 3.92-mile extension is one of Metro’s most ambitious transit infrastructure projects and marks a major milestone in Los Angeles public transportation. The new section extends subway service beyond the current Wilshire/Western station in Koreatown and introduces three new underground stations:

  • Wilshire/La Brea
  • Wilshire/Fairfax
  • Wilshire/La Cienega

The expansion is part of Metro’s larger “Twenty-Eight by ’28” initiative designed to improve mobility across the region ahead of the 2028 Olympic and Paralympic Games.

Downtown Los Angeles to Beverly Hills in About 20 Minutes

With the extension now open, riders can travel from Union Station in Downtown Los Angeles to Beverly Hills in approximately 20 minutes with no transfers required.

The D Line extension is expected to significantly improve travel along the heavily congested Wilshire Boulevard corridor, offering commuters, visitors and residents a faster and more reliable alternative to driving.

“Traveling through Mid-Wilshire to experience the culture, cuisine and commerce across diverse neighborhoods will be easier, faster and more accessible,” said Fernando Dutra, Metro Board Chair and City of Whittier Council Member.

Metro CEO Stephanie Wiggins also highlighted the importance of the project in connecting Angelenos to some of the city’s most iconic destinations.

“Angelenos and visitors alike will love the extended service from Downtown Los Angeles to Beverly Hills, delivering greater access to the iconic and culturally diverse communities, institutions and destinations that define the deep history along Wilshire Boulevard,” Wiggins said.

New Stations Connect Riders to Cultural Landmarks

Wilshire/La Brea Station

Located near Hancock Park and the western edge of Koreatown, the station provides access to cultural and entertainment destinations including:

  • Korean Cultural Center
  • Marciano Art Foundation
  • Ebell Theater
  • Popular restaurants including Republique and Sycamore Kitchen

Wilshire/Fairfax Station

Known as the heart of Museum Row, this station serves some of Los Angeles’ most recognizable cultural institutions and attractions, including:

  • Los Angeles County Museum of Art (LACMA)
  • Academy Museum of Motion Pictures
  • Petersen Automotive Museum
  • La Brea Tar Pits
  • The Grove
  • Original Farmers Market

The station also connects neighborhoods including Little Ethiopia, Park La Brea and the historic Fairfax District.

Wilshire/La Cienega Station

Serving as the eastern gateway to Beverly Hills, the station provides convenient access to Restaurant Row and destinations including the Beverly Center.

A Major Milestone for Los Angeles Transit

The D Line extension has been decades in the making and is widely considered one of the most important transit projects in Los Angeles history.

The project was funded primarily through Measure R, the voter-approved transportation sales tax passed in 2008, along with substantial federal funding support that included:

  • $1.25 billion Full Funding Grant Agreement (FFGA)
  • $66.4 million supplemental New Starts funding
  • $749.3 million TIFIA loan

All three stations feature modern amenities including public artwork, enhanced lighting, cell phone service, bicycle hubs and improved pedestrian access.

Metro officials hope the extension will encourage more residents and visitors to use public transportation while helping reduce roadway congestion ahead of major international events scheduled for Los Angeles later this decade.

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What’s Next for the D Line?

Construction is already underway on future phases of the D Line extension.

Phase 2 will continue west into Beverly Hills and Century City, while Phase 3 will eventually extend subway service to UCLA and the West Los Angeles VA campus.

Once completed, the D Line will provide a direct subway connection between Downtown Los Angeles and the Westside, dramatically reshaping mobility across one of Southern California’s busiest corridors.

Learn More

For official project details and station information, visit:

Metro D Line Opening Information

LA Metro Official Website

Stay connected with STM Daily News for the latest updates on Los Angeles transportation, Metro expansion projects, infrastructure developments, local news, technology, culture, and more. Visit STM Daily News for breaking stories, in-depth coverage, and exclusive content from across Southern California and beyond.

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It’s Cinco de Mayo! It’s time to celebrate

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Last Updated on May 4, 2026 by Daily News Staff

Cinco de Mayo is a holiday that commemorates the Mexican army’s victory over the French Empire at the Battle of Puebla on May 5, 1862. In the United States, the holiday has become a celebration of Mexican-American culture and heritage, often involving parades, parties, and traditional foods such as tacos and margaritas.

How will you celebrate Cinco de Mayo?


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The Knowledge

Metrolink Offers Fare-Free Rides for Earth Day 2026 Across Southern California

Metrolink offers fare-free rides for Earth Day 2026 across Southern California, encouraging sustainable travel and reduced emissions.

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Last Updated on April 21, 2026 by Daily News Staff

Metrolink Offers Fare-Free Rides for Earth Day 2026
Image Credit: Metrolink

Metrolink Offers Fare-Free Rides for Earth Day 2026

LOS ANGELES — April 22, 2026 — In a continued push toward sustainable transportation, Metrolink will once again offer systemwide free rides on Earth Day, inviting commuters and travelers to leave their cars behind and explore a cleaner way to move across the region.

A One-Day Opportunity to Ride Free

On Wednesday, April 22, passengers can board any Metrolink train — including the Arrow service — without purchasing a ticket. The initiative is part of the broader celebration of Earth Day, encouraging environmentally conscious travel choices.

The fare-free program is designed to appeal to both regular riders and first-time users, particularly those navigating Southern California’s persistent traffic congestion and rising fuel costs.

ml earth emailheader eng.jpg
Image Credit: Metrolink

Encouraging Sustainable Travel Habits

“Earth Day is a reminder that small changes, like choosing public transit over driving one day a week, can have a meaningful impact on our environment,” said Doug Chaffee, chair of the Metrolink Board.

With gas prices continuing to strain household budgets, the agency hopes the initiative will inspire more residents to consider rail as part of their regular commute.

Regional Connections Expand Access

Metrolink’s Earth Day promotion aligns with similar efforts by other Southern California transit providers. Riders can seamlessly connect to services operated by: LA Metro and the Orange County Transportation AuthorityRiverside County Transportation CommissionSan Bernardino County Transportation Authority and Ventura County Transportation Commission.

These partnerships extend the reach of fare-free travel across a six-county region, making it easier for riders to explore destinations without relying on personal vehicles.

Service Adjustments and Rider Tips

Passengers should note that trains will operate on a reduced weekday schedule, implemented earlier this spring. Despite the adjustment, all Metrolink lines and station cities remain in service.

For those planning a trip:

  • No ticket is required — simply board the train
  • Bikes are welcome, with capacity ranging from three bikes per standard car to nine in designated bike cars
  • A curated destination guide highlights attractions within walking or biking distance of stations

Environmental and Economic Impact

Metrolink is also promoting its Personal Impact Calculator, a digital tool that allows riders to estimate how switching from driving to rail can reduce greenhouse gas emissions and lower fuel expenses.

A Broader Trend in Public Transit

Fare-free transit days have gained traction nationwide as agencies look to boost ridership and promote sustainability. Southern California’s expansive commuter rail network makes it particularly well-suited for such initiatives, offering a viable alternative to one of the country’s most car-dependent regions.


Bottom Line

Metrolink’s Earth Day promotion is more than a one-day free ride — it’s a strategic effort to shift commuter behavior, reduce environmental impact, and showcase the convenience of regional rail. For Southern Californians, April 22 presents a low-risk opportunity to rethink how they travel.

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Source: Metrolink

https://metrolinktrains.com/news/metrolink-goes-fare-free-for-earth-day-on-april-22

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