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From farms to borders: Agricultural distortions and international migration

Author

Listed:
  • Braulio Britos

    (InternationalMonetaryFund)

  • Manuel Hernandez

    (International Food Policy Research Institute)

  • Danilo Trupkin

    (Universidad de San Andrés)

Abstract

International migration has surged in recent years, especially from rural areas in developing countries. This paper examines how agricultural distortions contribute to these emigration patterns and affect welfare, using Guatemala as a case study. A structural model with agricultural and non-agricultural sectors, estimated with micro and aggregated data, shows that distortions drive emigration among more productive agents and cause factor misallocation, diminishing overall productivity and incomes. Reducing distortions to the most efficient departments lowers emigration by 2.3 points and raises agricultural productivity by 30.1% and median welfare by 4.5%. High-distortion areas are more isolated and lack institutional and financial access.

Suggested Citation

  • Braulio Britos & Manuel Hernandez & Danilo Trupkin, 2025. "From farms to borders: Agricultural distortions and international migration," Working Papers 174, Universidad de San Andres, Departamento de Economia, revised Dec 2025.
    • Handle: RePEc:sad:wpaper:174
    as

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    File URL: https://webacademicos.udesa.edu.ar/pub/econ/doc174.pdf
    File Function: First version, December 2025
    Download Restriction: no
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    More about this item

    Keywords

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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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