Regional Convergence and The Causal Impact of Migration on Regional Growth Rates
AbstractThe standard growth theory predicts that allowing for labor mobility across regions would increase the speed of convergence in per capita income levels and that migration has a negative causal impact on regional growth rates. Although the empirical literature has uncovered some evidence for the former implication, the latter has not been verified empirically. This paper provides empirical evidence for the negative causal impact of migration on provincial growth rates in a developing country with a high level of internal migration that is characterized by unskilled labor exiting rural areas for urban centers. We utilize instrumental variables estimation method with an instrument unique to the country examined and also control for provincial fixed effects.
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Bibliographic InfoPaper provided by ERC - Economic Research Center, Middle East Technical University in its series ERC Working Papers with number 0702.
Length: 10 pages
Date of creation: Jan 2007
Date of revision: Jan 2007
Regional convergence; Regional growth; Internal migration; Fixed effects; IV estimation;
Other versions of this item:
- Kirdar, Murat & Saracoglu, Sirin, 2007. "Regional convergence and the causal impact of migration on regional growth rates," MPRA Paper 2031, University Library of Munich, Germany.
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-05-26 (All new papers)
- NEP-GEO-2007-05-26 (Economic Geography)
- NEP-MIG-2007-05-26 (Economics of Human Migration)
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- repec:chb:bcchwp:03 is not listed on IDEAS
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