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International Migration and Trade Agreements: the new role of PTAs

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  • Gianluca Orefice

Abstract

This paper investigates empirically the role of Preferential Trade Agreements (PTAs) as determinants of migration inflows for 29 OECD countries in the period 1998-2008. By increasing information about signatory countries, PTAs are expected to drive migration flows towards member countries. Building on the empirical literature on the determinants of migration, I estimate a modified gravity model on migration flows providing evidence of a strong positive effect of PTAs on bilateral migration flows. I also consider the content of PTAs as a further determinant of migration, finding that visa-and-asylum and labour market related provisions, when included in PTAs, stimulate bilateral migration flows. Finally, by comparing the average effects of PTAs on migration flows and on trade, I show that PTAs stimulate bilateral migration flows more than trade in final goods. PTAs might be used by government to increase inflows of immigrant workers in the case of labour shortages or population ageing.

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Paper provided by CEPII research center in its series Working Papers with number 2012-15.

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Date of creation: Jul 2012
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Handle: RePEc:cii:cepidt:2012-15
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Keywords: International Migration; Trade Policy; Preferential Trade Agreements;

Other versions of this item:

Find related papers by JEL classification:
  • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
  • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
  • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
  • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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Cited by:

  1. Jayjit Roy, 2010. "On the Robustness of the Trade-Inducing Effects of Trade Agreements and Currency Unions," Working Papers 10-09, Department of Economics, Appalachian State University.
  2. Badi H. Baltagi & Peter Egger & Michael Pfaffermayr, 2014. "Panel Data Gravity Models of International Trade," CESifo Working Paper Series 4616, CESifo Group Munich.
  3. Witada Anukoonwattaka & Adam Heal, 2013. "Regional Integration and Labour Mobility," Studies in Trade and Investment 81, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

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