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Foreign aid, bilateral asylum immigration and development

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  • Murat, Marina

Abstract

This paper measures the links between aid from 14 rich to 113 developing economies and bilateral asylum applications during years 1993 to 2013. Dynamic panel models and Sys-GMM are used. Results show that asylum applications are related to aid nonlinearly in the level of development of origin countries, in a U-shaped fashion, where only the downward segment proves to be robust to all specifications. Asylum inflows from poor countries are negatively, significantly and robustly associated with aid in the short run, with mixed evidence of more lasting effects, while inflows from less poor economies show a positive but weak relation with aid. Moreover, aid leads to negative cross-donor spillovers. Applications linearly decrease with humanitarian aid. Voluntary immigration is not linked to aid. Overall, the reduction in asylum inflows is stronger when aid disbursements are conditional on economic, institutional and political improvements in the recipient economy.

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  • Murat, Marina, 2019. "Foreign aid, bilateral asylum immigration and development," GLO Discussion Paper Series 378, Global Labor Organization (GLO).
    • Handle: RePEc:zbw:glodps:378
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    Cited by:

    1. Marina Murat, 2020. "Emigration and development. What are the links?," Department of Economics (DEMB) 0181, University of Modena and Reggio Emilia, Department of Economics "Marco Biagi".
    2. Carter, Patrick & Van de Sijpe, Nicolas & Calel, Raphael, 2021. "The elusive quest for additionality," World Development, Elsevier, vol. 141(C).
    3. Micevska, Maja, 2021. "Revisiting forced migration: A machine learning perspective," European Journal of Political Economy, Elsevier, vol. 70(C).
    4. Léa Marchal & Claire Naiditch & Betül Simsek, 2022. "How Foreign Aid Affects Migration: Quantifying Transmission Channels," Documents de travail du Centre d'Economie de la Sorbonne 22022, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    5. Paul Clist & Gabriele Restelli, 2021. "Development aid and international migration to Italy: Does aid reduce irregular flows?," The World Economy, Wiley Blackwell, vol. 44(5), pages 1281-1311, May.
    6. Marchal, Léa & Naiditch, Claire & Simsek, Betül, 2021. "Managing Migration Flows Through Foreign Aid," ILE Working Paper Series 46, University of Hamburg, Institute of Law and Economics.
    7. Jordi Ripollés & Inmaculada Martínez-Zarzoso, 2021. "African Asylum Seekers in Europe: The Interplay between Foreign Aid and Governance in Origin Countries," Open Economies Review, Springer, vol. 32(5), pages 829-865, November.
    8. Marina Murat, 2020. "Emigration and development. What are the links?," Department of Economics 0181, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    9. Mauro Lanati & Rainer Thiele, 2022. "South-South refugee movements: Do pull factors play a role?," RSCAS Working Papers 2022/60, European University Institute.
    10. Renner, Laura & Schmid, Lena, 2023. "The decision to flee: Exploring gender-specific determinants of international refugee migration," Discussion Paper Series 2023-01, University of Freiburg, Wilfried Guth Endowed Chair for Constitutional Political Economy and Competition Policy.
    11. Gabriele Restelli, 2021. "The effects of development aid on irregular migration to Europe: Deterrence or attraction?," Development Policy Review, Overseas Development Institute, vol. 39(6), pages 926-952, November.

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    More about this item

    Keywords

    foreign aid; asylum seekers and refugees; development;
    All these keywords.

    JEL classification:

    • F35 - International Economics - - International Finance - - - Foreign Aid
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination

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