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Migration, Tied Foreign Aid and the Welfare State

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Author Info
Panos Hatzipanayotou ()
Michael S. Michael ()

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Abstract

In this paper we highlight aspects related to the links between international migration, foreign tied aid and the welfare state. We model migration as a costly movement from an aid-recipient developing country with low income, poor infrastructure, and no welfare system, towards a rich donor, developed country with a well-developed welfare system. Within this model we find, among other things, that the best response of the developed donor country is to increase aid as the co-financing rate by the recipient country increases. When the immigration cost decreases, e.g. due to greater economic integration between the two countries, it is beneficial for the donor country to increase aid.

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Publisher Info
Paper provided by CESifo GmbH in its series CESifo Working Paper Series with number CESifo Working Paper No. 1497.

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Date of creation: 2005
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Handle: RePEc:ces:ceswps:_1497

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Related research
Keywords: migration tied foreign aid welfare state

Other versions of this item:

Find related papers by JEL classification:
F22 - International Economics - - International Factor Movements and International Business - - - International Migration
F35 - International Economics - - International Finance - - - Foreign Aid
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Myers, Gordon M. & Papageorgiou, Yorgos Y., 2000. "Immigration control and the welfare state," Journal of Public Economics, Elsevier, vol. 75(2), pages 183-207, February. [Downloadable!] (restricted)
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  2. David E. Wildasin, 1994. "Income Redistribution and Migration," Canadian Journal of Economics, Canadian Economics Association, vol. 27(3), pages 637-56, August. [Downloadable!] (restricted)
    Other versions:
  3. Thomas K. Bauer & Astrid Kunze, 2004. "The Demand for High-Skilled Workers And Immigration Policy," Brussels Economic Review/Cahiers Economiques de Bruxelles, Editions du DULBEA, Université libre de Bruxelles, Department of Applied Economics (DULBEA), vol. 47(1), pages 57-75.
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  4. Kenzo Abe, 1990. "A Public Input as a Determinant of Trade," Canadian Journal of Economics, Canadian Economics Association, vol. 23(2), pages 400-407, May. [Downloadable!] (restricted)
  5. Assaf Razin & Efraim Sadka, 2004. "Welfare Migration: Is the Net Fiscal Burden a Good Measure of Its Economic Impact on the Welfare of the Native Born Population?," NBER Working Papers 10682, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Chi-Chur Chao & Eden S.H. Yu, 2002. "Immigration and Welfare for the Host Economy with Imperfect Competition," Journal of Regional Science, Blackwell Publishing, vol. 42(2), pages 327-338. [Downloadable!] (restricted)
  7. Feehan, James P., 1992. "The optimal revenue tariff for public input provision," Journal of Development Economics, Elsevier, vol. 38(1), pages 221-231, January. [Downloadable!] (restricted)
  8. Enrica Detragiache & William Carrington, 1998. "How Big is the Brain Drain?," IMF Working Papers 98/102, International Monetary Fund.
  9. Epstein, Gil S. & Hillman, Arye L., 2003. "Unemployed immigrants and voter sentiment in the welfare state," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1641-1655, August. [Downloadable!] (restricted)
  10. M. G. Quibria, 1988. "On Generalizing the Economic Analysis of International Migration: A Note," Canadian Journal of Economics, Canadian Economics Association, vol. 21(4), pages 874-76, November. [Downloadable!] (restricted)
  11. Lahiri, Sajal & Raimondos-Moller, Pascalis, 1997. "Competition for aid and trade policy," Journal of International Economics, Elsevier, vol. 43(3-4), pages 369-385, November. [Downloadable!] (restricted)
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  12. Razin, Assaf & Sadka, Efraim & Swagel, Phillip, 2002. "Tax burden and migration: a political economy theory and evidence," Journal of Public Economics, Elsevier, vol. 85(2), pages 167-190, August. [Downloadable!] (restricted)
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  13. Agnar Sandmo & David Wildasin, 1999. "Taxation, Migration, and Pollution," International Tax and Public Finance, Springer, vol. 6(1), pages 39-59, February. [Downloadable!] (restricted)
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Robert Fenge & Volker Meier, 2006. "Subsidies for Wages and Infrastructure: How to Restrain Undesired Immigration," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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