On the Political Economy of High Skilled Migration and International Trade
AbstractWe develop a two-country, two-sector model with a continuum of workers to address the link between migration and trade where policy is determined by a simple referendum. In particular, we address two questions. First, are states already in free trade areas more likely to support full integration than states without free trade? Second, is trade liberalization more likely to be supported by a simultaneous referendum on trade and migration than in one on trade alone? The key to our analysis is the recognition that for free trade, migration, or trade and migration to be adopted, the relevant policy must pass the referendum in both countries. We identify conditions under which that occurs. Our model provides an interpretation of the evolution of the politics of economic integration related to NAFTA and European Union.
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Bibliographic InfoPaper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3880.
Date of creation: 2012
Date of revision:
skilled labor; migration; trade; political economy;
Other versions of this item:
- Bougheas, Spiros & Nelson, Doug, 2013. "On the political economy of high skilled migration and international trade," European Economic Review, Elsevier, vol. 63(C), pages 206-224.
- Spiros Bougheas & Doug Nelson, . "On the Political Economy of High Skilled Migration and International Trade," Discussion Papers 12/06, University of Nottingham, GEP.
- F15 - International Economics - - Trade - - - Economic Integration
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- F59 - International Economics - - International Relations and International Political Economy - - - Other
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