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Migration Creation and Diversion in the European Union: Is Central and Eastern Europe a 'Natural' Member of the Single Market for Labour?




This article applies the concepts of trade creation and trade diversion to immigration into the EU-15 in order to investigate whether during 1986-2006 there were any significant preference effects in favour of the CEECs (central and eastern European countries) that make them 'natural' members of the EU single market for labour. If this hypothesis is true, there should have been strong migration creation but little migration diversion in the last 20 years. The results broadly support migration creation for the CEECs prior to their EU membership. At the same time, the evidence of diversion away from other world regions is mixed. The combined impact of a common language and established communities, compared to distance and a common border, may contribute to the preservation of migration channels from outside Europe. Within Europe, to be an EU outsider can have a negative impact on migration channels. Moreover, whilst liberal immigration policies increase immigration contemporaneously, restrictive immigration policies only show an impact with a two-year lag. Copyright (c) 2010 The Author(s). Journal compilation (c) 2010 Blackwell Publishing Ltd.

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  • Helena Marques, 2010. "Migration Creation and Diversion in the European Union: Is Central and Eastern Europe a 'Natural' Member of the Single Market for Labour?," Journal of Common Market Studies, Wiley Blackwell, vol. 48, pages 265-291, March.
  • Handle: RePEc:bla:jcmkts:v:48:y:2010:i::p:265-291

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    References listed on IDEAS

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    Cited by:

    1. Raul Ramos & Jordi Suriñach, 2013. "“A gravity model of migration between ENC and EU”," IREA Working Papers 201317, University of Barcelona, Research Institute of Applied Economics, revised Oct 2013.
    2. Cansu Ünver, 2015. "Does Broadband Facilitate Immigration Flows? A Non-Linear Instrumental Variable Approach," Ekonomi-tek - International Economics Journal, Turkish Economic Association, vol. 4(1), pages 69-104, January.
    3. Marchal, Léa & Naiditch, Claire, 2016. "A micro-funded theory of multilateral resistance to migration," Kiel Working Papers 2051, Kiel Institute for the World Economy (IfW).
    4. Libman, Alexander & Herrmann-Pillath, Carsten & Yadav, Gaurav, 2013. "Are human rights and economic well-being substitutes? The evidence from migration patterns across the Indian states," European Journal of Political Economy, Elsevier, vol. 31(C), pages 139-164.

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