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Aid and Migration: Substitutes or Complements?

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  • Berthélemy, Jean-Claude
  • Beuran, Monica
  • Maurel, Mathilde

Abstract

Summary This paper investigates the impact of aid on migration and identifies two channels. Bilateral aid influences migration by enhancing the information about labor market conditions in the destination country (attraction effect). Total aid correlates with migration through increasing expenditure financing and hence, wages in countries of origin (push effect). We compute the critical level of income above which emigration and income are substitutes, which is about US $7,300 per capita in PPP 2000 prices, for example, Brazil or Russia. We argue that for countries below this threshold, there is a trade-off between aid and migration policies. A tightening of the migration policy is equivalent to a reduction of the level of aid by about 24%. A comparison of skilled and unskilled migrations shows that the former are more sensitive to the attraction effect than the latter.

Suggested Citation

  • Berthélemy, Jean-Claude & Beuran, Monica & Maurel, Mathilde, 2009. "Aid and Migration: Substitutes or Complements?," World Development, Elsevier, vol. 37(10), pages 1589-1599, October.
  • Handle: RePEc:eee:wdevel:v:37:y:2009:i:10:p:1589-1599
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    References listed on IDEAS

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    Cited by:

    1. Kang, Youngho & Kim, Byung-Yeon, 2012. "Immigration and Economic Growth: Do Origin and Destination Matter?," MPRA Paper 39695, University Library of Munich, Germany.
    2. Michael A. Clemens, 2014. "Does development reduce migration?," Chapters,in: International Handbook on Migration and Economic Development, chapter 6, pages 152-185 Edward Elgar Publishing.
    3. Askarov, Zohid & Doucouliagos, Hristos, 2015. "Spatial aid spillovers during transition," European Journal of Political Economy, Elsevier, vol. 40(PA), pages 79-95.
    4. Thu Hien DAO & Frédéric DOCQUIER & Mathilde MAUREL & Pierre SCHAUS, 2018. "Global Migration in the 20th and 21st Centuries: the Unstoppable Force of Demography," Working Papers P223, FERDI.
    5. repec:jed:journl:v:42:y:2017:i:2:p:1-15 is not listed on IDEAS
    6. Gianluca Orefice, 2015. "International migration and trade agreements: The new role of PTAs," Canadian Journal of Economics, Canadian Economics Association, vol. 48(1), pages 310-334, February.
    7. Rayp, Glenn & Ruyssen, Ilse & Standaert, Samuel, 2017. "Measuring and Explaining Cross-Country Immigration Policies," World Development, Elsevier, vol. 95(C), pages 141-163.
    8. Aurore Gary & Mathilde Maurel, 2013. "The effect of donors' policy coherence on growth," Post-Print halshs-00825816, HAL.
    9. Michael Clemens, 2014. "Does Development Reduce Migration? - Working Paper 359," Working Papers 359, Center for Global Development.
    10. Aurore Gary & Audrey-Rose Menard, 2015. "Aid, Trade and Migration : How are OECD countries policies connected in times of crisis?," Working Papers of BETA 2015-11, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    11. Xu, Xu & Sylwester, Kevin, 2016. "The effects of foreign direct investment on emigration: The roles of FDI source country, education, and gender," Economic Modelling, Elsevier, vol. 55(C), pages 401-409.
    12. Marina Murat, 2017. "Foreign Aid and responsiveness of bilateral refugee inflows," Department of Economics 0113, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    13. repec:zag:zirebs:v:20:y:2017:i:1:p:101-112 is not listed on IDEAS
    14. Clemens, Michael A. & Postel, Hannah M., 2017. "Deterring Emigration with Foreign Aid: An Overview of Evidence from Low-Income Countries," IZA Policy Papers 136, Institute for the Study of Labor (IZA).
    15. Chepel, S. & Bondarenko, K., 2015. "Is the External Labor Migration an Economic Growth Factor: Econometric Analysis and Policy Implications for the CIS Countries," Journal of the New Economic Association, New Economic Association, vol. 28(4), pages 142-166.
    16. Graziella Bertocchi & Arcangelo Dimico & Francesco Lancia & Alessia Russo, 2017. "Youth Enfranchisement, Political Responsiveness, and Education Expenditure: Evidence from the U.S," Center for Economic Research (RECent) 130, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    17. José Antonio Alonso & Rodolfo Gutiérrez, 2010. "Lengua y emigración: España y el español en las migraciones internacionales," Documentos de Trabajo del Instituto Complutense de Estudios Internacionales 14-10, Universidad Complutense de Madrid, Instituto Complutense de Estudios Internacionales.
    18. Marina Murat, 2017. "Foreign aid and asylum immigration. Does development matter?," Center for Economic Research (RECent) 133, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    19. Marina Murat, 2017. "Foreign aid and asylum immigration. Does development matter?," Department of Economics 0120, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    20. Christopher R. Parsons & L. Alan Winters, 2014. "International migration, trade and aid: a survey," Chapters,in: International Handbook on Migration and Economic Development, chapter 4, pages 65-112 Edward Elgar Publishing.
    21. Minasyan, Anna & Nunnenkamp, Peter, 2015. "Donors' openness to immigration and the effectiveness of foreign aid," Kiel Working Papers 1983, Kiel Institute for the World Economy (IfW).
    22. Mauro Lanati & Alessandra Venturini, 2017. "The Import of “cultural goods” and emigration: an unexplored relation," RSCAS Working Papers 2017/24, European University Institute.
    23. Jose Antonio Alonso, 2011. "International Migration and Development: A review in light of the crisis," CDP Background Papers 011, United Nations, Department of Economics and Social Affairs.

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    Keywords

    aid migration;

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