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Revisiting a Gravity Model of Immigration: A Panel Data Analysis of Economic Factors

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  • Kim, Kyunghun

    (Hongik University)

Abstract

This study investigates the effect of economic factors on immigration using the gravity model of immigration. Cross-sectional regression and panel data analyses are conducted from 2000 to 2019 using the OECD International Migration Database, which consists of 36 destination countries and 201 countries of origin. The Poisson pseudo-maximum-likelihood method, which can effectively correct potential biased estimates caused by zeros in the immigration data, is used for estimation. The results indicate that the economic factors strengthened after the global financial crisis. Additionally, this effect varies depending on the type of immigration (the income level of origin country). The gravity model applied to immigration performs reasonably well, but it is necessary to consider the country-specific and time-varying characteristics.

Suggested Citation

  • Kim, Kyunghun, 2022. "Revisiting a Gravity Model of Immigration: A Panel Data Analysis of Economic Factors," East Asian Economic Review, Korea Institute for International Economic Policy, vol. 26(2), pages 143-169, June.
    • Handle: RePEc:ris:eaerev:0408
    DOI: 10.11644/KIEP.EAER.2022.26.2.408
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    More about this item

    Keywords

    Gravity Model; Immigration; Poisson Pseudo-maximum Likelihood;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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