The Bridge
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.
Last Updated on March 7, 2026 by Daily News Staff
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.
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.
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.
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.
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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.
5 Ways to Make a Difference in Your Community
(Feature Impact) Communities are strengthened every day by local organizations working to address challenges close to home, whether that’s helping families access food, supporting students, expanding opportunity or providing essential resources to those who need them most. Often operating with limited resources, these organizations are finding practical solutions that make a meaningful difference in neighborhoods and communities across the country.
Many of these efforts happen quietly, powered by people who volunteer their time, share their expertise, donate resources or simply help spread awareness of causes they care about.
For individuals looking to make a difference where they live, community involvement doesn’t have to start with a large commitment. Consider these five options to get involved.
Give Your Time
Giving your time is one of the most direct ways to support organizations serving your community. Whether it’s packing meals, mentoring young people or participating in neighborhood cleanups, volunteering allows people to contribute directly while gaining a deeper understanding of local needs.
Share Your Skills
Nonprofits often need specialized skills in addition to hands-on volunteer support. Communications support, technology expertise, event planning, photography, financial guidance and other professional skills can help organizations expand their reach and strengthen their operations. Contributing the skills you’ve developed can often be just as valuable as donating time or resources.
Tap Into Your Workplace
Many employers offer opportunities to support causes that matter to their employees, such as volunteer programs, community grants or other charitable opportunities.
In communities across the country, local nonprofits can receive support through programs like the PepsiCo Foundation’s Community Impact Awards, where employees can nominate nonprofit organizations in their local communities for grant funding. Since 2022, the program has invested more than $3.7 million into organizations working on issues ranging from food access to education and community development.
“Across North America, there are organizations showing up every day for their communities, often without recognition and with limited resources,” said Monica Bauer, SVP of social impact, PepsiCo and president of the PepsiCo Foundation. “The Community Impact Awards help shine a light on organizations that are creating opportunities, solving local challenges and making a real difference in people’s lives. What makes this program special is that the recognition comes from PepsiCo associates who know these organizations firsthand and have seen their impact up close.”
This year, 100 organizations across the U.S. and Canada received $500,000 total in grants and teamed up with their respective nominating employees for volunteer activities supporting their missions, giving employees another opportunity to engage directly.
Give What You Can
Financial contributions are a valuable way to give back, but they aren’t the only option. Many organizations need non-monetary donations such as school supplies, canned goods, clothing, toys and technology. Before collecting items, check with organizations to learn what is most needed and how contributions can make the greatest impact.
Use Your Voice
One person can make a difference. When that person gets a friend or family member involved, more people can discover and support organizations doing important work. Sharing a nonprofit’s mission on social media, inviting others to volunteer or connecting people with causes you care about can help organizations reach new supporters and expand their impact.
Making a difference doesn’t require doing everything at once. Whether you contribute your time, skills, resources or advocacy, small actions can help make a big impact over time.
Across the U.S., nonprofit organizations are helping improve lives, create opportunities and respond to community needs every day. Their work is a reminder that meaningful change often starts locally with people willing to get involved.
Learn more about how individuals and organizations can help address some of the most pressing needs in their communities by visiting PepsiCo.com/about/social-impact.
SOURCE:
PepsiCo
Community
‘Give Like a Kid Again’ for Real-World Impact This Halloween
Costumes. Candy. Jack-o-lanterns glowing on porches. Halloween is filled with moments that spark children’s imaginations. This Halloween, children and families can “Give Like a Kid Again,” turning imagination into kindness and helping children around the world.
‘Give Like a Kid Again’ for Real-World Impact This Halloween
(Feature Impact)Costumes. Candy. Jack-o-lanterns glowing on porches. Halloween is filled with moments that spark children’s imaginations.
This Halloween, Trick-or-Treat for UNICEF is inviting children and families to “Give Like a Kid Again,” turning imagination into kindness and helping children around the world. For eight decades,the campaign has shown children that even the smallest act of kindness can travel farther than any front porch and shine brighter than any jack-o-lantern. As the longest-running youth engagement campaign in the United States, it has inspired generations of children to discover that when kids help kids, one Halloween tradition can turn into a lifetime of impact.
What started with just $17 in 1950, when a small group of children filled milk cartons with spare change to help children recovering from World War II, has grown into one of America’s most beloved Halloween traditions, raising nearly $200million to help the organization deliver lifesaving support for children around the world. Today, the iconic orange collection box reminds families that small acts of generosity can create lasting change.
“Each Halloween, Trick-or-Treat for UNICEF reminds us that even the smallest acts of generosity can grow into something extraordinary,” said Shelley Diamond, chief marketing officer, UNICEF USA. “For more than 75 years, this campaign has shown generations of children that you are never too young to make a difference and ‘Give Like a Kid Again’ is about passing that belief on to the next generation.”
Beyond supporting programs in more than 190 countries and territories, donations strengthen the organization’s global humanitarian supply network, delivering emergency essentials like therapeutic food, medicine, blankets and safe water to children impacted by conflict, disasters and disease.
- Be a mermaid and help make waves for clean water. Help provide safe water for a child for a year for $5.
- Be a vampire and help scare away preventable diseases. World Polio Day, just a week before Halloween, provides an opportunity to protect 200 children under age 5 from polio with a $43 donation.
- Be a scientist and help uncover lifesaving answers. Provide 25 malaria diagnostic tests for just $8, helping children receive timely treatment.
- Be a teacher and help children write their next chapter. Provide 1,000 pencils to help children put their ideas, lessons and dreams on paper for $30.
- Be a chef and help cook up a healthier future. Over a two-month period, $10 can treat 15 children by providing 450 packets of micronutrient powder.
- Be an astronaut and help a girl reach for the stars. To helpsix girls feel confident in school, $36 can provide reusable menstrual pads.
- Be a snowman and help bundle up a child against the cold. A donation of $50 could provide a child in an emergency setting with winter clothing, including a jacket, hat, scarf, mittens, socks, winter boots, a warm sweater and warm puffball trousers.
- Be a soccer player (or referee) and help kick off playtime. Provide up to four packages of soccer balls for a child-friendly space for $25 to help kids just be kids again.
This October, everyone can “Give Like a Kid Again” through the iconic orange collection box, online fundraising and family-friendly activities. Visit unicefusa.org/TOT2026 to join the tradition and help make a difference for children around the world.
SOURCE:
UNICEF
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PenFed Foundation Raises Over $1.2M for Veterans and Military Families at 23rd Annual Military Heroes Golf Classic
The PenFed Foundation says it raised over $1.2 million for veterans and military families at its 23rd annual Military Heroes Golf Classic.
The PenFed Foundation for Military Heroes said it raised more than $1.2 million to support veterans and military families during its 23rd annual Military Heroes Golf Classic, held Monday, Aug. 31, according to a PRNewswire release. The nonprofit, based in the Washington, D.C. region, focuses on helping veterans transition “from service to success” through programs and grants aimed at military-connected communities.
“We are deeply grateful to our partners and supporters whose generosity and dedication make this event—and the Foundation’s work—possible,” said retired Air Force Lt. Gen. Bradford J. “B.J.” Shwedo, president of the PenFed Foundation, in a statement announcing the fundraising total.
At a dinner held the night before the Golf Classic, PenFed Credit Union President/CEO and PenFed Foundation CEO James Schenck recognized Ed Cody for 25 years of service on the foundation’s board of directors. Cody also serves as chairman of the PenFed Credit Union board and was credited with helping guide initiatives including Defender’s Lodge, the Afghan Rescue and Resettlement Program, the Veteran Entrepreneur Program, and grants supporting wounded, ill, and injured service members.
The foundation said it has provided more than $55 million in financial support to veterans, active-duty service members, and military families since it was founded in 2001. It also noted that PenFed Credit Union covers salaries and administrative costs, allowing more donations to go directly to programs.
What to watch for: How the foundation allocates the new $1.2M across its veteran transition and emergency support programs—and whether it announces new grant rounds tied to entrepreneurship and resettlement work.
SOURCE PenFed Foundation
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