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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.

Suggested Citation

  • Gianluca Orefice, 2012. "International Migration and Trade Agreements: the new role of PTAs," Working Papers 2012-15, CEPII research center.
    • Handle: RePEc:cii:cepidt:2012-15
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    Cited by:

    1. Masayuki MORIKAWA, 2018. "Effects of Distance and Borders on International and Interregional Tourist Flows: A micro-gravity analysis," Discussion papers 18021, Research Institute of Economy, Trade and Industry (RIETI).
    2. repec:hal:spmain:info:hdl:2441/17g7senmu38qqa09nqh9tk9hbn is not listed on IDEAS
    3. Erik Figueiredo & Luiz Renato Lima & Gianluca Orefice, 2016. "Migration and Regional Trade Agreements: A (New) Gravity Estimation," Review of International Economics, Wiley Blackwell, vol. 24(1), pages 99-125, February.
    4. Sandra Lavenex & Philipp Lutz & Paula Hoffmeyer-Zlotnik, 2024. "Migration governance through trade agreements: insights from the MITA dataset," The Review of International Organizations, Springer, vol. 19(1), pages 147-173, January.
    5. Edwin Le Heron & Nicolas Yol, 2019. "The macroeconomic effects of migrants' remittances in Moldova: a stock–flow consistent model," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 16(1), pages 31-54, April.
    6. Jayjit Roy, 2014. "On the robustness of the trade-inducing effects of trade agreements and currency unions," Empirical Economics, Springer, vol. 47(1), pages 253-304, August.
    7. Romano Piras, 2020. "Internal Migration in Italy: The Role of Migration Networks," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(1), pages 157-195, March.
    8. Beverelli, Cosimo & Orefice, Gianluca, 2019. "Migration deflection: The role of Preferential Trade Agreements," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    9. Badi H. Baltagi & Peter Egger & Michael Pfaffermayr, 2014. "Panel Data Gravity Models of International Trade," CESifo Working Paper Series 4616, CESifo.
    10. repec:spo:wpmain:info:hdl:2441/17g7senmu38qqa09nqh9tk9hbn is not listed on IDEAS
    11. Cosimo Beverelli, 2022. "Pull factors for migration: The impact of migrant integration policies," Economics and Politics, Wiley Blackwell, vol. 34(1), pages 171-191, March.

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    More about this item

    Keywords

    International Migration; Trade Policy; Preferential Trade Agreements;
    All these keywords.

    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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