The paper presents single-equation error-correction models of aggregate German exports and imports. The long …-run elasticities with respect to foreign production and to total demand in Germany, respectively, amount to about 1.5. However, imports … react much less flexibly than exports to changes in the real effective exchange rate of the D-mark (0.1 versus -0.5) during …

barriers and thus enhance exports. The model is estimated using international trade data at a German State-level. We provide … evidence that migrants have a positive and statistically significant impact on bilateral exports of German States. …