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Gravity model estimates of the spatial determinants of trade, migration, and trade-and-migration policies

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  • Freeman, Rebecca
  • Lewis, John

Abstract

Using a gravity model, we explore the effects of distance and borders on trade, migration, and trade-and-migration policies and document three key differences between trade and migration patterns in otherwise equivalent specifications. Regional trade (freedom-of-movement) agreements boost trade (migration) less (more) the more distant the country pairs. Distance effects on trade (migration) decrease (are unchanged) over time. International border effects on trade (migration) decrease (are unchanged) over time.

Suggested Citation

  • Freeman, Rebecca & Lewis, John, 2021. "Gravity model estimates of the spatial determinants of trade, migration, and trade-and-migration policies," Economics Letters, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:ecolet:v:204:y:2021:i:c:s0165176521001506
    DOI: 10.1016/j.econlet.2021.109873
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    References listed on IDEAS

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    Cited by:

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    6. Satoshi Shimizutani & Eiji Yamada, 2023. "Transformation of international migrants in head wind: Evidence from Tajikistan in the 2010s," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 525-549, February.

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    More about this item

    Keywords

    Regional trade agreements; Freedom-of-movement agreements; Distance puzzle; Migration; Globalization;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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