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Migration, FDI, and the Margins of Trade

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  • James Anderson

Abstract

The present study develops a simple analytically solvable heterogeneous firm model of trade, investment and migration; where foreign direct investment, international trade and labour migration are determined simultaneously. We estimate the theoretical model based on micro data for 4.5 million companies from the OECD countries. Our estimates confirm that entry costs and firm heterogeneity largely determine the flows of foreign direct investment, international trade and labour migration.

Suggested Citation

  • James Anderson, 2001. "Migration, FDI, and the Margins of Trade," EERI Research Paper Series EERI_RP_2001_05, Economics and Econometrics Research Institute (EERI), Brussels.
    • Handle: RePEc:eei:rpaper:eeri_rp_2001_05
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    File URL: http://www.eeri.eu/documents/wp/EERI_RP_2001_05.pdf
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    More about this item

    Keywords

    Heterogeneous firms; foreign direct investment; international trade; labour migration;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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