Small State Regional Cooperation, South-South and South-North Migration, and International Trade
AbstractThis paper provides a different basis than previous analyses for regional bloc formation and regional migration. Due to low bargaining power and fixed costs, small states face a severe disadvantage in negotiations with the rest of the world and might benefit by forming a regional bloc. The study a) presents a general equilibrium model where bargaining power, international (IC) and regional (RC) negotiation costs, number of issues negotiated (N), and accession rule to the bloc determine its size and welfare impact, and b) examines the impact of international migration as well as the migration-trade relationship. The main findings are: i) the likelihood of regional bloc formation, its size and welfare impact increases with IC, N and decreases with RC; ii) bloc size is optimal (below the optimum) if an accession fee is (is not) charged; iii) South-South migration raises bloc size and welfare; iv) South-South migration and trade are complements under market access negotiations and are substitutes under negotiations for unilateral transfers as well as under migrant remittances; and vi) South-North migration and bloc formation, and South-North and South-South migration, are substitutes for the states that benefit from membership in the bloc.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 4938.
Length: 21 pages
Date of creation: May 2010
Date of revision:
Publication status: forthcoming in: Journal of Economic Integration, 2014
Contact details of provider:
Postal: IZA, P.O. Box 7240, D-53072 Bonn, Germany
Phone: +49 228 3894 223
Fax: +49 228 3894 180
Web page: http://www.iza.org
Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Other versions of this item:
- Schiff, Maurice, 2010. "Small state regional cooperation, south-south and south-north migration, and international trade," Policy Research Working Paper Series 5297, The World Bank.
- F15 - International Economics - - Trade - - - Economic Integration
- F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-22 (All new papers)
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.:
- Javorcik, Beata S. & Özden, Çaglar & Spatareanu, Mariana & Neagu, Cristina, 2011.
"Migrant networks and foreign direct investment,"
Journal of Development Economics,
Elsevier, vol. 94(2), pages 231-241, March.
- Javorcik, Beata S. & Ozden, Caglar & Spatareanu, Mariana & Neagu, Cristina, 2006. "Migrant networks and foreign direct investment," Policy Research Working Paper Series 4046, The World Bank.
- Beata S. Javorcik & Ã‡aglar Ã–zden & Mariana Spatareanu & Cristina Neagu, 2006. "Migrant Networks and Foreign Direct Investment," Working Papers Rutgers University, Newark, Department of Economics, Rutgers University, Newark 2006-003, Department of Economics, Rutgers University, Newark.
- Kugler, Maurice & Rapoport, Hillel, 2007. "International labor and capital flows: Complements or substitutes?," Economics Letters, Elsevier, vol. 94(2), pages 155-162, February.
- de Melo, Jaime & Ivlevs, Artjoms, 2008.
"FDI, the Brain Drain and Trade: Channels and Evidence,"
CEPR Discussion Papers
7002, C.E.P.R. Discussion Papers.
- Artjoms IVLEVS & Jaime DE MELO, 2010. "FDI, the Brain Drain and Trade: Channels and Evidence," Annales d'Economie et de Statistique, ENSAE, issue 97-98, pages 103-121.
- Artjoms Ivlevs & Jaime de Melo, 2008. "FDI, the Brain Drain and Trade: Channels and Evidence," Development Working Papers 261, Centro Studi Luca d\'Agliano, University of Milano.
- Artjoms Ivlevs & Jaime de Melo, . "FDI, the Brain Drain and Trade: Channels and Evidence," Discussion Papers 08/40, University of Nottingham, GEP.
- Andriamananjara, Soamiely & Schiff, Maurice, 1998. "Regional groupings among microstates," Policy Research Working Paper Series 1922, The World Bank.
- Ramón López & Maurice Schiff, 1998. "Migration and the Skill composition of the Labor Force: The Impact of Trade Liberalization in LDCs," Canadian Journal of Economics, Canadian Economics Association, vol. 31(2), pages 318-336, May.
- James E. Rauch & Vitor Trindade, 2002.
"Ethnic Chinese Networks In International Trade,"
The Review of Economics and Statistics,
MIT Press, vol. 84(1), pages 116-130, February.
- Markusen, James R., 1983. "Factor movements and commodity trade as complements," Journal of International Economics, Elsevier, vol. 14(3-4), pages 341-356, May.
- Baldwin, Richard, 1993.
"A Domino Theory of Regionalism,"
CEPR Discussion Papers
857, C.E.P.R. Discussion Papers.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Fallak).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.