Connect with us

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.

Published

on

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.

Advertisement
image 101376000 12222003

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

Advertisement
image 101376000 12222003

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.

Advertisement
image 101376000 12222003

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

Advertisement
image 101376000 12222003

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/

Want more stories 👋
“Your morning jolt of Inspiring & Interesting Stories!”

Sign up to receive awesome articles directly to your inbox.

We don’t spam! Read our privacy policy for more info.

STM Coffee Newsletter 1

Discover more from Daily News

Subscribe to get the latest posts sent to your email.

STM Blog

Crime is nonpartisan and the blame game on crime in cities is wrong – on both sides

Published

on

crime
Neither party – Democrats nor Republicans – is doing a better job at fixing crime. Carl Ballou – iStock/Getty Images Plus
Justin de Benedictis-Kessner, Harvard Kennedy School and Christopher S. Warshaw, George Washington University Following George Floyd’s death at the hands of police in Minneapolis in 2020, the U.S. has undergone a national reckoning over crime prevention and police reform. Across the country, calls went out from activists to rethink the scope and role of the police. Some on the left vowed to “defund” the police. Others on the right promised to instead “back the blue” and maintain or increase police funding. This rhetorical tug-of-war unfolded while many cities across the country grappled with spiking crime rates during the first months of the COVID-19 pandemic. Blaming crime on Democratic city leaders was a centerpiece of Donald Trump’s 2024 presidential campaign. He repeatedly made claims about crime spikes in recent years without evidence or context. More recently, Republican congressional leaders have called several Democratic mayors from across the country to testify before Congress about their sanctuary city policies that are aimed at protecting noncitizens from deportation. These congressional politicians have asserted that these Democratic mayors – Brandon Johnson of Chicago, Mike Johnston of Denver, Michelle Wu of Boston, and Eric Adams of New York – have “created a public safety nightmare” in their cities by allowing immigrants without legal authorization to stay there. Journalists and politicians on both sides of the aisle have claimed that local election results over the past four years in places like San Francisco and Los Angeles reflect a widespread frustration with Democratic policies on crime in cities. Under this argument, Democratic city leaders need to change their approach on crime to satisfy voters. It’s become a political axiom of sorts that policies championed largely by Democratic city leaders over the past half decade have resulted in rising crime levels. As researchers of politics and public policy, we wanted to figure out if that was true.
Screenshot of a New York Times headline that says 'Progressive Backlash in California Fuels Democratic Debate Over Crime.'
A New York Times headline from June 8, 2022, linking crime rates and the Democratic Party. The New York Times

Neither party does a better job

As any student of introductory statistics learns, correlation doesn’t imply causation. Looking at increases or decreases in crime rates in Republican or Democratic cities and claiming either party is to blame would be making exactly this error: confusing correlation with causation. We put to the test the argument that one side or the other is better at fighting crime in our research published in January 2025. By employing three decades of data on mayoral elections from across the country, we were able to disentangle city leaders’ partisanship from other features of cities. Contrary to much of the political rhetoric and media coverage aimed at most Americans, our results show that neither party is doing a better job at actually causing crime to decrease. In Dallas, Mayor Eric Johnson has claimed that Democratic leaders aren’t taking public safety seriously and that the Democratic Party is “with the criminals.” Johnson switched from being a Democrat to a Republican in 2023 and attributes his decision at least partially to this partisan difference on crime and policing and the seriousness with which he takes this policy issue. But our research shows that Johnson’s and others’ claims about Democratic cities becoming more dangerous just aren’t true: Mayors from the Democratic Party aren’t making cities any more – or less – dangerous than mayors from the Republican Party. Nor, it turns out, is there any support for claims by some progressive Democrats that they would reduce the role – and enormous budgets – of police departments in cities across the country. When we examined the number of sworn police officers in cities and how much money those cities spend on the police, Democratic and Republican mayors alike have had surprisingly little influence on police department budgets or sizes. In other words, Democrats aren’t cutting police budgets, nor are Republicans increasing police budgets. Most cities have increased police budgets in the past few years, possibly due to pressure from police unions.
A man at a lectern in a large room with the word 'POLICE' on the wall behind him.
Dallas Mayor Eric Johnson speaks during the second day of the 2024 Republican National Convention in Milwaukee on July 16, 2024. Andrew Caballero-Reynolds/AFP via Getty Images

‘Crime is nonpartisan’

It turns out that campaign promises from both sides of the partisan aisle about crime and policing have little bearing on what’s happening on the ground in most cities and police departments across the country. Neither party is doing a better job at reducing crime. Nor is either party actually addressing the ballooning financial cost of local police forces in the U.S., nor the long-term reputational costs from police misconduct for trust in the police and government more broadly. As others have said: crime is nonpartisan. Crime has decreased across the U.S. during the past three decades overall, and the isolated cities where crime has increased recently can reverse these temporary trends. Partisan blame narratives do little to actually lower crime and make neighborhoods safer, though. There are real evidence-backed policies that reduce crime – such as youth jobs programs in Chicago and Boston. Other policies reduce racial disparities in the criminal justice system – such as alternative 911 response programs that use unarmed behavioral health workers to respond to some types of emergencies. These policies and interventions might not be as slogan-worthy as “defund the police” or “back the blue.” Nor is implementing these policies as politically convenient as blaming sanctuary city mayors. But research shows that they work and can move cities toward the shared goal of improved public safety for their residents.The Conversation Justin de Benedictis-Kessner, Associate Professor of Public Policy, Harvard Kennedy School and Christopher S. Warshaw, Professor of Political Science, George Washington 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/  

Discover more from Daily News

Subscribe to get the latest posts sent to your email.

Continue Reading

News

Francis, a pope of many firsts: 5 essential reads

Published

on

Francis
A mourner holds a portrait of Pope Francis at the Basílica de San José de Flores in Buenos Aires, a church where the pope worshipped in his youth. AP Photo/Gustavo Garello
Molly Jackson, The Conversation Pope Francis, whose papacy blended tradition with pushes for inclusion and reform, died on April, 21, 2025 – Easter Monday – at the age of 88. Here we spotlight five stories from The Conversation’s archive about his roots, faith, leadership and legacy.

1. A Jesuit pope

Jorge Mario Bergoglio became a pope of many firsts: the first modern pope from outside Europe, the first whose papal name honors St. Francis of Assisi, and the first Jesuit – a Catholic religious order founded in the 16th century. Those Jesuit roots shed light on Pope Francis’ approach to some of the world’s most pressing problems, argues Timothy Gabrielli, a theologian at the University of Dayton. Gabrielli highlights the Jesuits’ “Spiritual Exercises,” which prompt Catholics to deepen their relationship with God and carefully discern how to respond to problems. He argues that this spiritual pattern of looking beyond “presenting problems” to the deeper roots comes through in Francis’ writings, shaping the pope’s response to everything from climate change and inequality to clerical sex abuse.

2. LGBTQ+ issues

Early on in his papacy, Francis famously told an interviewer, “If someone is gay and he searches for the Lord and has good will, who am I to judge?” Over the years, he has repeatedly called on Catholics to love LGBTQ+ people and spoken against laws that target them.
Two same-sex couples stand in a church.
An LGBTQ couple embrace after a pastoral worker blesses them at a Catholic church in Germany, in defiance of practices approved by Rome. Andreas Rentz/Getty Images
But “Francis’ inclusiveness is not actually radical,” explains Steven Millies, a scholar at the Catholic Theological Union. “His remarks generally correspond to what the church teaches and calls on Catholics to do,” without changing doctrine – such as that marriage is only between a man and a woman. Rather, Francis’ comments “express what the Catholic Church says about human dignity,” Millies writes. “Francis is calling on Catholics to take note that they should be concerned about justice for all people.”

3. Asking forgiveness

At times, Francis did something that was once unthinkable for a pope: He apologized. He was not the first pontiff to do so, however. Pope John Paul II declared a sweeping “Day of Pardon” in 2000, asking forgiveness for the church’s sins, and Pope Benedict XVI apologized to victims of sexual abuse. During Francis’ papacy, he acknowledged the church’s historic role in Canada’s residential school system for Indigenous children and apologized for abuses in the system. But what does it mean for a pope to say, “I’m sorry”?
A dancer in a bright red outfit with fringe performs in a cobblestoned plaza, with drummers nearby.
Members of the Assembly of First Nations perform in St. Peter’s Square at the Vatican on March 31, 2022, ahead of an Indigenous delegation’s meeting with Pope Francis. AP Photo/Alessandra Tarantino
Annie Selak, a theologian at Georgetown University, unpacks the history and significance of papal apologies, which can speak for the entire church, past and present. Often, she notes, statements skirt an actual admission of wrongdoing. Still, apologies “do say something important,” Selak writes. A pope “apologizes both to the church and on behalf of the church to the world. These apologies are necessary starting points on the path to forgiveness and healing.”

4. A church that listens

Many popes convene meetings of the Synod of Bishops to advise the Vatican on church governance. But under Francis, these gatherings took on special meaning. The Synod on Synodality was a multiyear, worldwide conversation where Catholics could share concerns and challenges with local church leaders, informing the topics synod participants would eventually discuss in Rome. What’s more, the synod’s voting members included not only bishops but lay Catholics – a first for the church.
A woman and man walk holding a large red book whose cover says 'La Parola di Dio'
Participants arrive for a vigil prayer led by Pope Francis and other religious leaders before the 2023 Synod of Bishops assembly. Isabella Bonotto/Anadolu Agency via Getty Images
The process “pictures the Catholic Church not as a top-down hierarchy but rather as an open conversation,” writes University of Dayton religious studies scholar Daniel Speed Thompson – one in which everyone in the church has a voice and listens to others’ voices.

5. Global dance

In 2024, University of Notre Dame professor David Lantigua had a cup of maté tea with some “porteños,” as people from Buenos Aires are known. They shared a surprising take on the Argentine pope: “a theologian of the tango.”
A man in a white jacket and white skullcap sips from a straw coming out of a brown container, with a crowd in the background.
Pope Francis drinks maté, the national beverage of Argentina, in St. Peter’s Square on his birthday on Dec. 17, 2014. Alberto Pizzoli/AFP via Getty Images
Francis does love the dance – in 2014, thousands of Catholics tangoed in St. Peter’s Square to honor his birthday. But there’s more to it, Lantigua explains. Francis’ vision for the church was “based on relationships of trust and solidarity,” like a pair of dance partners. And part of his task as pope was to “tango” with all the world’s Catholics, carefully navigating culture wars and an increasingly diverse church. Francis was “less interested in ivory tower theology than the faith of people on the streets,” where Argentina’s beloved dance was born. This story is a roundup of articles from The Conversation’s archives.The Conversation Molly Jackson, Religion and Ethics Editor, The Conversation 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/  

Discover more from Daily News

Subscribe to get the latest posts sent to your email.

Continue Reading

News

Inglewood Shifts Gears: From People Mover to Dedicated Bus Lanes

Published

on

Inglewood
Metro Rail and Busway system map. LA Metro

Inglewood, California, is taking a new approach to enhance mobility as plans for an ambitious automated people mover falter. On Tuesday, city officials announced a strategic pivot from the Inglewood Transit Connector’s original vision—a fully automated elevated system—to a more practical solution centered around dedicated bus lanes. This shift aims to bolster transit connections between local hubs and the city’s thriving sports and entertainment district.

Inglewood Transit Project

The revised project intends to transform the urban landscape over the next few years. Residents and visitors can look forward to the rollout of new mobility hubs dedicated solely to buses, separate lanes to ensure efficient transit, expanded bike infrastructure, and improved overall traffic flow. Furthermore, upgrades to walkability are including features designed to accommodate the influx of attendees for events at major venues like SoFi Stadium, YouTube Theater, Intuit Dome, and the Kia Forum.

Originally, the Inglewood Transit Connector sought to seamlessly link the Downtown Inglewood Metro station on the K Line with the rapidly developing sports and entertainment area. However, the ambitious people mover project faced significant challenges. Local officials, community members concerned about business displacement, and prominent figures like U.S. Rep. Maxine Waters voiced their apprehensions, ultimately leading to the project’s cancellation.

This strategic pivot signifies a more pragmatic approach to transit solutions in Inglewood. By focusing on dedicated bus lanes, the city can effectively improve access to its bustling attractions without the complexities and potential disruptions associated with constructing an elevated system.

The transition underscores Inglewood’s commitment to enhancing urban mobility, catering to both the local residents and the increasing number of visitors drawn to its vibrant entertainment scene. As the city embraces this new direction, the focus remains steadfast on creating a more connected, accessible infrastructure that meets the needs of its community.

Inglewood’s dedication to improving transit connections exemplifies a growing trend in urban planning—prioritizing adaptable solutions that can be implemented quickly while still serving the long-term goals of connectivity and sustainability. The dedicated bus lanes, complemented by enhanced bike paths and improved pedestrian walkways, will offer a holistic approach to transportation that can keep pace with Inglewood’s dynamic growth.

As the city moves forward with these changes, all eyes will be on Inglewood to see how this revised plan enhances community connectivity while supporting its vibrant cultural and entertainment district.

Related link:

Advertisement
image 101376000 12222003

https://ktla.com/news/travel/inglewood-transit-project/

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/

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

STM Daily News is a multifaceted podcast that explores a wide range of topics, from life and consumer issues to the latest in food and beverage trends. Our discussions dive into the realms of science, covering everything from space and Earth to nature, artificial intelligence, and astronomy. We also celebrate the amateur sports scene, highlighting local athletes and events, including our special segment on senior Pickleball, where we report on the latest happenings in this exciting community. With our diverse content, STM Daily News aims to inform, entertain, and engage listeners, providing a comprehensive look at the issues that matter most in our daily lives. https://stories-this-moment.castos.com/


Discover more from Daily News

Subscribe to get the latest posts sent to your email.

Continue Reading

Trending