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Does Access to Foreign Markets Shape Internal Migration? Evidence from Brazil

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  • Laura Hering
  • Rodrigo Paillacar

Abstract

This paper investigates how internal migration is affected by Brazil's increased integration into the world economy. We analyze the impact of regional differences in access to foreign demand on sector-specific bilateral migration rates between the Brazilian states for the years 1995 to 2003. Using international trade data, we compute a foreign market access measure at the sectoral level, which is exogenous to domestic migration. A higher foreign market access is associated with a higher local labor demand and attracts workers via two potential channels: higher wages and new job opportunities. Our results show that both channels play a significant role in internal migration. Further, we find a heterogeneous impact across industries, according to their comparative advantage on the world market. However, the observed impact is driven by the strong reaction of low-educated workers to changes in market access. This finding is consistent with the fact that Brazil is exporting mainly goods that are intensive in unskilled labor.

Suggested Citation

  • Laura Hering & Rodrigo Paillacar, 2016. "Does Access to Foreign Markets Shape Internal Migration? Evidence from Brazil," The World Bank Economic Review, World Bank, vol. 30(1), pages 78-103.
    • Handle: RePEc:oup:wbecrv:v:30:y:2016:i:1:p:78-103.
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    File URL: http://hdl.handle.net/10.1093/wber/lhv028
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    Cited by:

    1. Gabrielle Gambuli, 2023. "Navigating the Geography of Regional Disparities: Market Access and the Core-Periphery Divide," Thema Working Papers 2023-05, THEMA (Théorie Economique, Modélisation et Applications), CY Cergy-Paris University, ESSEC and CNRS.
    2. Mayneris, Florian & Martin, Julien & Theophile, Ewane, 2020. "The price of remoteness: Product availability and local cost of living in Ethiopia," CEPR Discussion Papers 14515, C.E.P.R. Discussion Papers.
    3. Matthieu Crozet & Laura Hering & Sandra Poncet, 2018. "Looking for the Bright Side of the China Syndrome: Rising Export Opportunities and Life Satisfaction in China," Working Papers 2018-14, CEPII research center.
    4. Eva-Maria Egger, 2019. "Migrants leaving mega-cities: Where they move and why prices matter," WIDER Working Paper Series wp-2019-113, World Institute for Development Economic Research (UNU-WIDER).
    5. Masahiro ENDOH & Toshiyuki MATSUURA & Akira SASAHARA, 2025. "The Effect of Import Shocks on Internal Migration in Japan," Discussion papers 25108, Research Institute of Economy, Trade and Industry (RIETI).
    6. Yoshihiro KAMEYAMA, 2023. "Inbound Tourism Demand and Japanese Regional Productivity before the COVID-19 Pandemic: The role of tourism agglomeration and electronic payment," Discussion papers 23009, Research Institute of Economy, Trade and Industry (RIETI).

    More about this item

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F66 - International Economics - - Economic Impacts of Globalization - - - Labor
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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