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Migration and the Sending Economy: A Disaggregated Rural Economy Wide Analysis

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  • Taylor, J. Edward
  • Dyer, George

Abstract

Most economic research on migration impacts in source economies focuses on the households that send migrants and receive remittances, ignoring linkages that transmit migration’s influences to others in local and regional economies. This paper offers an alternative, disaggregated economy wide perspective on migration and its impacts. It presents and illustrates a methodology to understand not only migration’s effects on migrant-sending households, but also the ways in which these households transmit influences of migration to others in the source economy, via local market linkages. Data from the 2003 Mexico National Rural Household Survey are used to calibrate a series of interacting rural household models nested within a general equilibrium model of the whole rural economy. This modeling approach combines the strengths of micro models focusing on rural households with economy wide models, which highlight economic linkages among economic actors but traditionally have been implemented at an aggregate (national or multi-national) level. It explicitly takes into account the market structures that govern economic interactions and promote or retard the spread of migration effects within sending economies. Simulations reveal that the impacts of international migration and remittances on sending areas may be positive or negative and depend critically on the ways in which local markets transmit impacts among households.

Suggested Citation

  • Taylor, J. Edward & Dyer, George, 2006. "Migration and the Sending Economy: A Disaggregated Rural Economy Wide Analysis," Working Papers 190913, University of California, Davis, Department of Agricultural and Resource Economics.
  • Handle: RePEc:ags:ucdavw:190913
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    File URL: http://ageconsearch.umn.edu/record/190913/files/WP06-002.pdf
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    References listed on IDEAS

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    1. Lucas, Robert E B, 1987. "Emigration to South Africa's Mines," American Economic Review, American Economic Association, vol. 77(3), pages 313-330, June.
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    9. Taylor, J. Edward, 1992. "Remittances and inequality reconsidered: Direct, indirect, and intertemporal effects," Journal of Policy Modeling, Elsevier, vol. 14(2), pages 187-208, April.
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    12. Deaton,Angus & Muellbauer,John, 1980. "Economics and Consumer Behavior," Cambridge Books, Cambridge University Press, number 9780521296762.
    13. Taylor, J. Edward & Dyer, George A. & Yunez-Naude, Antonio, 2005. "Disaggregated Rural Economywide Models for Policy Analysis," World Development, Elsevier, vol. 33(10), pages 1671-1688, October.
    14. Massey, Douglas S., 2005. "Worlds in Motion: Understanding International Migration at the End of the Millennium," OUP Catalogue, Oxford University Press, number 9780199282760.
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    Citations

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    Cited by:

    1. Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, vol. 6(1), pages 1-38, July.
    2. Filipski, Mateusz & Edward Taylor, J. & Msangi, Siwa, 2011. "Effects of Free Trade on Women and Immigrants: CAFTA and the Rural Dominican Republic," World Development, Elsevier, vol. 39(10), pages 1862-1877.
    3. Paul, Saumik, 2018. "The Effect of Emigration on Household Labor Supply: Evidence from Central Asia and South Caucasus," ADBI Working Papers 822, Asian Development Bank Institute.
    4. Karla Borja, 2014. "Social Capital, Remittances and Growth," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(5), pages 574-596, December.
    5. Michael Christian Lehman, 2014. "Long-Run Effects Of Conditional Cash Transfers," Anais do XLI Encontro Nacional de Economia [Proceedings of the 41st Brazilian Economics Meeting] 223, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics].
    6. Fida Karam, 2008. "When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up ?," Post-Print halshs-00344833, HAL.
    7. J. Edward Taylor & Karen Thome, 2012. "A Methodology for Local Economy-wide Impact Evaluation (LEWIE) of Cash Transfers," One Pager 183, International Policy Centre for Inclusive Growth.
    8. Theodore Gerber & Karine Torosyan, 2013. "Remittances in the Republic of Georgia: Correlates, Economic Impact, and Social Capital Formation," Demography, Springer;Population Association of America (PAA), vol. 50(4), pages 1279-1301, August.
    9. Filipski, Mateusz & Aboudrare, Abdellah & Lybbert, Travis J. & Taylor, J. Edward, 2017. "Spice Price Spikes: Simulating Impacts of Saffron Price Volatility in a Gendered Local Economy-Wide Model," World Development, Elsevier, vol. 91(C), pages 84-99.
    10. repec:spr:soinre:v:137:y:2018:i:3:d:10.1007_s11205-017-1630-4 is not listed on IDEAS
    11. Melissa SIEGEL & Jennifer WAIDLER, 2012. "Migration and multi-dimensional poverty in Moldovan communities," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 105-119, December.
    12. Murshed Chowdhury, 2016. "Financial Development, Remittances and Economic Growth: Evidence Using a Dynamic Panel Estimation," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 10(1), pages 35-54, February.
    13. repec:ere:journl:v:xxxviii:y:2019:i:1:p:61-89 is not listed on IDEAS
    14. Fida Karam, 2008. "When Migrant Remittances Are Not Everlasting, How Can Morocco Make Up?," Working Papers hal-00304885, HAL.
    15. SHI, Xiaoping & HEERINK, Nico & QU, Futian, 2009. "The role of off-farm employment in the rural energy consumption transition -- A village-level analysis in Jiangxi Province, China," China Economic Review, Elsevier, vol. 20(2), pages 350-359, June.
    16. Dyer, George A. & Taylor, J. Edward, 2011. "The Corn Price Surge: Impacts on Rural Mexico," World Development, Elsevier, vol. 39(10), pages 1878-1887.
    17. Filipski, Mateusz & Aboudrare, Abdellah & Lybbert, Travis J. & Taylor, J. Edward, 2015. "Spice Price Spikes: Simulating Gendered Impacts of a Saffron Boom and Bust in Rural Mexico," 2015 Conference, August 9-14, 2015, Milan, Italy 229066, International Association of Agricultural Economists.
    18. repec:oup:jecgeo:v:18:y:2018:i:4:p:915-950. is not listed on IDEAS

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