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Migration, Specialization, and Trade: Evidence from the Brazilian March to the West

Author

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  • Heitor S. Pellegrina
  • Sebastian Sotelo

Abstract

Exploiting a large migration of farmers to the West of Brazil between 1950 and 2010, we study how migration shapes aggregate and regional comparative advantage. We document that farmers emigrating from regions with high employment in an activity are more likely to work in that activity and have higher income than other migrants doing so. We incorporate this heterogeneity into a quantitative model and find that, by reshaping comparative advantage, declines in migration costs contributed substantially to Brazil’s rise as a leading commodity exporter. Opportunities to migrate, moreover, account for a substantial share of the gains from trade.

Suggested Citation

  • Heitor S. Pellegrina & Sebastian Sotelo, 2022. "Migration, Specialization, and Trade: Evidence from the Brazilian March to the West," Working Papers 186, Peruvian Economic Association.
    • Handle: RePEc:apc:wpaper:186
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    2. Florio, Erminia & Manfredonia, Stefano, 2021. "Ancestors, inter-generational transmission of attitudes, and corporate performance: Evidence from the Italian Mass Migration," GLO Discussion Paper Series 830, Global Labor Organization (GLO).
    3. Takeda, Kohei, 2023. "The Geography of Structural Transformation: Effects on Inequality and Mobility," OSF Preprints 8nfx5, Center for Open Science.
    4. Gáfaro, Margarita & Pellegrina, Heitor S., 2022. "Trade, farmers’ heterogeneity, and agricultural productivity: Evidence from Colombia," Journal of International Economics, Elsevier, vol. 137(C).
    5. Fabian Eckert & Michael Peters, 2018. "Spatial Structural Change," 2018 Meeting Papers 98, Society for Economic Dynamics.
    6. Wookun Kim, 2023. "Migration, Commuting, and the Spatial Distribution of Public Spending," Departmental Working Papers 2305, Southern Methodist University, Department of Economics.
    7. Takeda, Kohei, 2022. "The geography of structural transformation: effects on inequality and mobility," LSE Research Online Documents on Economics 118050, London School of Economics and Political Science, LSE Library.
    8. Marein, Brian, 2022. "Colonial Roads and Regional Inequality," Journal of Urban Economics, Elsevier, vol. 131(C).
    9. Kohei Takeda, 2022. "The geography of structural transformation: Effects on inequality and mobility," CEP Discussion Papers dp1893, Centre for Economic Performance, LSE.

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    More about this item

    Keywords

    International Trade; Migration; Comparative Advantage;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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