The Heckscher-Ohlin (H-O) theory concludes that international trade is a substitute for international immigration.Although there is some evidence to support this proposition,studies for the US,Canada and Luropean countries have found that migration acts as a complement to trade.However,there are no studies that focus on the long run relation of AustraliaAsian trade.This paper fills the void.We apply dynamic ordinary least squares (DOLS) technique in a multivariate panel Gravity Model framework to investigate the issue.The empirical results found that Asian migrants make a significant positive long run contribution to Australia's trade with migrant origin countries in Asia.
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