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This paper examines the extent to which having Spanish as a second language influences trade in Trinidad and Tobago (T&amp;T). Our study is motivated by the inflow of Venezuelan migrants into T&amp;T on account of political and economic tensions in Venezuela. This influx of immigrants can positively impact the T&amp;T economy using the Rybczynski theorem. This is necessary given that the country faces an aging population and a decline in trade with traditional trade partners. Gravity modelling including Pooled OLS, Fixed Effects Model, Random Effects Model and the Poisson-Pseudo Maximum Likelihood method are used to examine whether language affects T&amp;T’s extra-regional trade with Spanish speaking countries. It is determined that language is a significant factor in promoting trade in T&amp;T, increasing bilateral trade and exports. The impact of Spanish immigrants on the T&amp;T economy reduces the loss of exports as compared to if Spanish immigrants were absent. We suggest an intensification of the adoption of Spanish as a second language in T&amp;T in order to promote trade with other Spanish speaking countries as it would reduce communication costs.

The impact of Spanish immigrants on the Trinidad and Tobago’s economy: can Spanish as a second language promote trade?