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Migration and New Economic Geography [Economic Geography and intra-CEE migration]

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d’Artis Kancs

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Abstract

In this paper we study how European integration might affect the mobility of workers in CEE. Unlike previous migration studies we base the empirical analysis on the economic geography theory à la Krugman (1991). The economic geography framework offers the advantage that we do not require ex ante data for the explanatory variables. Parameters for the theoretical model are estimated econometrically using migration data from the past. Our simulation results show that in the CEE even moderate changes in explanatory variables (e.g. transport costs) can easily lead to sizeable and unpredictable migration flows, which confirms the importance of a general equilibrium framework. Our empirical findings predict that European integration would trigger a selective migration between the CEE accession countries. However, according to our simulation results, labour mobility is sufficiently low in CEE to make a swift emergence of a core-periphery pattern very unlikely.

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Publisher Info
Paper provided by Economics and Econometrics Research Institute (EERI) in its series EERI Research Paper Series with number EERI_RP_2006_01.

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Length: 45 pages
Date of creation: Jan 2006
Date of revision:
Handle: RePEc:eei:rpaper:eeri_rp_2006_01

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Related research
Keywords: New Economic Geography; migration; European regions; economic integration;

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Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
R12 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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  1. Paul S. Davies & Michael J. Greenwood & Haizheng Li, 2001. "A Conditional Logit Approach to U.S. State-to-State Migration," Journal of Regional Science, Blackwell Publishing, vol. 41(2), pages 337-360. [Downloadable!] (restricted)
  2. Michael Fertig, 2001. "The economic impact of EU-enlargement: assessing the migration potential," Empirical Economics, Springer, vol. 26(4), pages 707-720. [Downloadable!] (restricted)
  3. Marius Brülhart & Pamina Koenig, 2005. "New Economic Geography meets Comecon: Regional Wages and Industry Location in Central Europe," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.01, Université de Lausanne, Faculté des HEC, DEEP. [Downloadable!]
  4. Pfluger, Michael, 2004. "A simple, analytically solvable, Chamberlinian agglomeration model," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 565-573, September. [Downloadable!] (restricted)
  5. Phillip B. Levine & David J. Zimmerman, 1999. "An empirical analysis of the welfare magnet debate using the NLSY," Journal of Population Economics, Springer, vol. 12(3), pages 391-409. [Downloadable!] (restricted)
  6. Arellano, Manuel & Honore, Bo, 2001. "Panel data models: some recent developments," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 53, pages 3229-3296 Elsevier. [Downloadable!] (restricted)
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  7. Bauer, Thomas & Zimmermann, Klaus F., 1999. "Occupational Mobility of Ethnic Migrants," IZA Discussion Papers 58, Institute for the Study of Labor (IZA). [Downloadable!]
  8. Bo E. Honoré & Ekaterini Kyriazidou, 2000. "Panel Data Discrete Choice Models with Lagged Dependent Variables," Econometrica, Econometric Society, vol. 68(4), pages 839-874, July.
  9. Tito Boeri & Herbert Brücker, 2005. "Why are Europeans so tough on migrants?," Economic Policy, CEPR, CES, MSH, vol. 20(44), pages 629-703, October. [Downloadable!] (restricted)
  10. Bartel, Ann P, 1989. "Where Do the New U.S. Immigrants Live?," Journal of Labor Economics, University of Chicago Press, vol. 7(4), pages 371-91, October. [Downloadable!] (restricted)
  11. Head, Keith & Mayer, Thierry, 2004. "The empirics of agglomeration and trade," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 59, pages 2609-2669 Elsevier. [Downloadable!] (restricted)
    Other versions:
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