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Migration, Relationship Capital and International Travel: Theory and Evidence

Author

Listed:
  • Philip McCann

    (University of Waikato)

  • Jacques Poot

    (University of Waik)

  • Lynda Sanderson

    (Reserve Bank of New Zealand)

Abstract

In this paper we consider how international migration is related to the frequency and duration of trips to the home country. For many migrants, international migration triggers a series of trips to visit the home country that allow for a replenishment of the depleted relationship capital with family and friends back home, but these trips incur travel costs and foregone earnings. Given plausible assumptions about the depreciation and replenishment of home country relationship capital, a steady-state level of average maintained relationship capital implies that the optimized travel frequency is inversely related to the distance and the transportation costs, and positively related to the psychological costs of separation. The total time spent at home is increasing in the trip frequency, but with an elasticity that is decreasing in cultural proximity. Empirical evidence in support of these theoretical predictions is found in a unique longitudinal sample of international travel of 13,674 New Zealand citizens and 6,882 UK citizens who migrated to Australia between 1 August 1999 and 31 July 2000.

Suggested Citation

  • Philip McCann & Jacques Poot & Lynda Sanderson, 2008. "Migration, Relationship Capital and International Travel: Theory and Evidence," Working Papers in Economics 08/12, University of Waikato.
    • Handle: RePEc:wai:econwp:08/12
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    References listed on IDEAS

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    Cited by:

    1. ., 2012. "Migration impact assessment: a state of the art," Chapters, in: Peter Nijkamp & Jacques Poot & Mediha Sahin (ed.), Migration Impact Assessment, chapter 1, pages 3-62, Edward Elgar Publishing.
    2. Möllers, Judith & Traikova, Diana & Herzfeld, Thomas & Bajrami, Egzon, "undated". "Study on rural migration and return migration in Kosovo," IAMO Discussion Papers 261254, Institute of Agricultural Development in Transition Economies (IAMO).
    3. Faruk, Balli & Syed Abul, Basher & Rosmy, Jean Louis & Ahmed Saber, Mahmud, 2016. "On the global determinants of visiting home," MPRA Paper 72291, University Library of Munich, Germany.
    4. Hung, Kam & Xiao, Honggen & Yang, Xiaotao, 2013. "Why immigrants travel to their home places: Social capital and acculturation perspective," Tourism Management, Elsevier, vol. 36(C), pages 304-313.
    5. Jacques Poot, 2015. "Cross-border migration and travel: A virtuous relationship," IZA World of Labor, Institute of Labor Economics (IZA), pages 209-209, November.
    6. Amelie F. Constant & Olga Nottmeyer & Klaus F. Zimmermann, 2013. "The economics of circular migration," Chapters, in: Amelie F. Constant & Klaus F. Zimmermann (ed.), International Handbook on the Economics of Migration, chapter 3, pages 55-74, Edward Elgar Publishing.
    7. Steven Bond-Smith & Philip McCann, 2022. "The work-from-home revolution and the performance of cities," Working Papers 2022-6, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    8. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," RFBerlin Discussion Paper Series 1104, ROCKWOOL Foundation Berlin (RFBerlin).
    9. Ernest Miguélez & Rosina Moreno, 2014. "What Attracts Knowledge Workers? The Role Of Space And Social Networks," Journal of Regional Science, Wiley Blackwell, vol. 54(1), pages 33-60, January.
    10. Anna Klabunde, 2014. "Computational Economic Modeling of Migration," Ruhr Economic Papers 0471, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
    11. Roskruge, Matthew & Poot, Jacques, 2024. "The Relationship between Social Capital and Migrant Integration, Ethnic Diversity, and Spatial Sorting," IZA Discussion Papers 17012, Institute of Labor Economics (IZA).
    12. Masood Gheasi & Peter Nijkamp & Jacques Poot, 2013. "Special issue on international migration: editorial introduction," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(1), pages 1-5, August.
    13. Grimes, Arthur & Oxley, Les & Tarrant, Nicholas, 2012. "Does Money Buy Me Love? Testing Alternative Measures of National Wellbeing," Motu Working Papers 291419, Motu Economic and Public Policy Research.
    14. Alderighi, Marco & Gaggero, Alberto A., 2014. "The effects of global alliances on international flight frequencies: Some evidence from Italy," Journal of Air Transport Management, Elsevier, vol. 39(C), pages 30-33.
    15. Anat Tchetchik, 2015. "Do communication technologies and “migration induced travel” complement or compete with each other?," Letters in Spatial and Resource Sciences, Springer, vol. 8(3), pages 335-356, November.
    16. Matthew Roskruge & Jacques Poot, 2025. "Evidence of the effects of ethnic diversity, years of residence, and location on migrant bridging, bonding, and linking, social capital: a New Zealand synthesis," Asia-Pacific Journal of Regional Science, Springer, vol. 9(3), pages 831-867, September.
    17. Klabunde, Anna, 2014. "Computational Economic Modeling of Migration," Ruhr Economic Papers 471, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    18. Maarten Bosker & Harry Garretsen, 2010. "Trade costs in empirical New Economic Geography," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 485-511, August.
    19. Minh Tran, Ngoc Thi & Cameron, Michael P. & Poot, Jacques, 2017. "International Migration and Institutional Quality in the Home Country: It Matters Where You Go and How Long You Stay!," IZA Discussion Papers 10945, Institute of Labor Economics (IZA).
    20. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    21. Marco Pecoraro & Massimiliano Tani, 2023. "Does Certifying Foreign Qualifications Lead to Better Immigrant Skills Utilization?," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 170(1), pages 291-322, November.
    22. Jacques Poot & Anna Strutt, 2010. "International Trade Agreements and International Migration," The World Economy, Wiley Blackwell, vol. 33(12), pages 1923-1954, December.

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    Keywords

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    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • 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
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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