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Revisiting the Migration-Development Nexus: A Gravity Model Approach

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  • Letouzé, Emmanuel
  • Purser, Mark
  • Rodríguez, Francisco
  • Cummins, Matthew

Abstract

This paper presents empirical estimates of a gravity model of bilateral migration that properly accounts for non-linearities and tackles causality issues through an instrumental variables approach. In contrast to the existing literature, which is limited to OECD data, we have estimated our model using a matrix of bilateral migration stocks for 127 countries. We find that the inverted-U relationship between income at origin and migration found by other authors survives the more demanding bilateral specification but does not survive both instrumentation and introduction of controls for the geographical and cultural proximity between country pairs. We also evaluate the effect of migration on origin and destination country income using the geographically determined component of migration as a source of exogenous variation and fail to find a significant effect of migration on origin or destination income.

Suggested Citation

  • Letouzé, Emmanuel & Purser, Mark & Rodríguez, Francisco & Cummins, Matthew, 2009. "Revisiting the Migration-Development Nexus: A Gravity Model Approach," MPRA Paper 19227, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:19227
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    1. repec:oup:cesifo:v:63:y:2017:i:4:p:445-480. is not listed on IDEAS
    2. Michael A. Clemens, 2014. "Does development reduce migration?," Chapters,in: International Handbook on Migration and Economic Development, chapter 6, pages 152-185 Edward Elgar Publishing.
    3. Sibbertsen, Philipp & Stöver, Britta, 2017. "Die räumliche Flexibilität von Studierenden - Gründe für das Wanderungsverhalten von Studienanfänger/-innen zwischen den Bundesländern," Hannover Economic Papers (HEP) dp-604, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    4. Francesco Nicolli & Giulia Bettin, 2012. "Does climate change foster emigration from less developed countries? Evidence from bilateral data," Working Papers 201210, University of Ferrara, Department of Economics.
    5. Jasmin Katrin Gröschl, 2013. "Gravity Model Applications and Macroeconomic Perspectives," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 48.
    6. Jasmin Gröschl & Thomas Steinwachs, 2017. "Do Natural Hazards Cause International Migration?," CESifo Economic Studies, CESifo, vol. 63(4), pages 445-480.
    7. Michael Good, 2013. "Gravity and Localized Migration," Economics Bulletin, AccessEcon, vol. 33(4), pages 2445-2453.
    8. Laura Hering & Rodrigo Paillacar, 2016. "Does Access to Foreign Markets Shape Internal Migration? Evidence from Brazil," World Bank Economic Review, World Bank Group, vol. 30(1), pages 78-103.
    9. Bishawjit Mallick & Joachim Vogt, 2014. "Population displacement after cyclone and its consequences: empirical evidence from coastal Bangladesh," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 73(2), pages 191-212, September.
    10. Michael Clemens, 2014. "Does Development Reduce Migration? - Working Paper 359," Working Papers 359, Center for Global Development.
    11. Robert E.B. Lucas, 2014. "The migration–trade link in developing economies: a summary and extension of evidence," Chapters,in: International Handbook on Migration and Economic Development, chapter 11, pages 288-326 Edward Elgar Publishing.
    12. Marie Poprawe, 2015. "On the relationship between corruption and migration: empirical evidence from a gravity model of migration," Public Choice, Springer, vol. 163(3), pages 337-354, June.
    13. Dirk Engel & Oliver Heneric, 2013. "Localization of knowledge and entrepreneurs’ mobility: the case of Germany’s biotechnology industry," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 33(2), pages 173-192, October.

    More about this item

    Keywords

    Gravity models; international migration; economic growth;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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