IDEAS home Printed from https://ideas.repec.org/p/erg/wpaper/595.html
   My bibliography  Save this paper

Trade Liberalization and the Skill Composition of Migrant Flows: the Case of Morocco

Author

Listed:
  • Fida Karam

    () (Gulf University for Science and Technology, Kuwait)

Abstract

Empirically, little is known about the effects of trade liberalization on the skill composition of emigration flows in developing countries. The available computational literature has focused, for the most part, on United States-Mexico migration patterns after the creation of the North American Free Trade Agreement. More recent works have investigated the relation between trade liberalization and emigration in Morocco, without looking to the impact of trade liberalization on skilled and unskilled migration. This paper investigates the effects of trade liberalization on the skill composition of migrant flows in Morocco. Because trade agreements involve substantial changes in prices, resource allocation and income, they also affect migration incentives, when migration is motivated by the wage differential between receiving and sending countries. Trade liberalization will be problematic for an unskilled-labor abundant country like Morocco, if it gives incentives to skilled workers to move across borders. An appealing way of addressing this topic is to formulate a dynamic computable general equilibrium model that illustrates the transmission channels by which trade liberalization affects local wages and migration incentives. The model is calibrated on the Moroccan Social Accounting Matrix (SAM) of 2003. The results show that both the free trade agreement with the European Union and multilateral liberalization reduce skilled and unskilled migration flows, but is more pronounced in the multilateral case.

Suggested Citation

  • Fida Karam, 2011. "Trade Liberalization and the Skill Composition of Migrant Flows: the Case of Morocco," Working Papers 595, Economic Research Forum, revised 07 Jan 2011.
  • Handle: RePEc:erg:wpaper:595
    as

    Download full text from publisher

    File URL: http://erf.org.eg/wp-content/uploads/2014/08/595.pdf
    Download Restriction: no

    File URL: http://bit.ly/2m5FMVl
    Download Restriction: no

    References listed on IDEAS

    as
    1. Karam Fida, 2010. "When Migrant Remittances Are Not Everlasting: How Can Morocco Make Up?," Review of Middle East Economics and Finance, De Gruyter, pages 1-38.
    2. Cockburn, John & Decaluwe, Bernard & Dostie, Benoît, 1998. "Les leçons du mariage entre les modèles d'équilibre général calculable et la nouvelle théorie du commerce international: application à la Tunisie," Cahiers de recherche 9804, Université Laval - Département d'économique.
    3. Amaranta Melchor del Río & Susanne Thorwarth, 2006. "Tomatoes or Tomato Pickers? - Free Trade and Migration in the NAFTA Case," Working Papers 0429, University of Heidelberg, Department of Economics, revised Dec 2006.
    4. Jacques Bouhga-Hagbe, 2004. "A Theory of Workers' Remittances with An Application to Morocco," IMF Working Papers 04/194, International Monetary Fund.
    5. Bouzahzah, Mohamed & Esmaeili, Hamid & Ihadiyan, Abid, 2007. "Ouverture commerciale et migration," L'Actualité Economique, Société Canadienne de Science Economique, vol. 83(1), pages 71-90, mars.
    6. David G. Blanchflower & Andrew J. Oswald, 1995. "An Introduction to the Wage Curve," Journal of Economic Perspectives, American Economic Association, vol. 9(3), pages 153-167, Summer.
    7. Agenor, Pierre-Richard & Aynaoui, Karim El, 2003. "Labor market policies and unemployment in Morocco : a quantitative analysis," Policy Research Working Paper Series 3091, The World Bank.
    8. Thomas F. Rutherford & E. Elisabet Rutstrom & David Tarr, 2014. "Morocco's free trade agreement with the EU: A quantitative assessment," World Scientific Book Chapters,in: APPLIED TRADE POLICY MODELING IN 16 COUNTRIES Insights and Impacts from World Bank CGE Based Projects, chapter 17, pages 405-437 World Scientific Publishing Co. Pte. Ltd..
    9. Hill, John K. & Mendez, JoseA., 1984. "The effect of commercial policy on international migration flows: The case of the United States and Mexico," Journal of International Economics, Elsevier, vol. 17(1-2), pages 41-53, August.
    10. Chan, Nguyen & Dung, Tran Kim & Ghosh, Madanmohan & Whalley, John, 2005. "Adjustment costs in labour markets and the distributional effects of trade liberalization: Analytics and calculations for Vietnam," Journal of Policy Modeling, Elsevier, vol. 27(9), pages 1009-1024, December.
    11. Cockburn, John & Decaluwé, Bernard & Dostie, Benoît, 1998. "Les leçons du mariage entre les modèles d’équilibre général calculable et la nouvelle théorie du commerce international," L'Actualité Economique, Société Canadienne de Science Economique, vol. 74(3), pages 381-413, septembre.
    12. Robinson, Sherman & Burfisher, Mary E. & Hinojosa-Ojeda, Raul & Thierfelder, Karen E., 1993. "Agricultural policies and migration in a U.S.-Mexico free trade area: A computable general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 673-701.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erg:wpaper:595. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sherine Ghoneim). General contact details of provider: http://edirc.repec.org/data/erfaceg.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.