IDEAS home Printed from
   My bibliography  Save this paper

South-North migration and trade : a survey


  • Schiff, Maurice


Before 1973, the labor market in Europe was tight and immigration from the South (chiefly North Africa and Southern Europe) was encouraged. But with the slowdown in growth in the mid-1970s, the rise in unemployment, and increased economic uncertainty, immigration came to be viewed as a burden by the destination countries. The demand for migration fell, but the supply did not. As United States (U.S.) and European Union (EU) opposition to immigration increased, some proposed using trade policy to deal with immigration, with the assumption that trade is a substitute for migration. Using both one-sector and two-sector models, the author examines the relationship between trade and migration, as well as the welfare implications of different trade and migration policies for both sending and receiving countries. The results are ambiguous: opening markets in the North and providing foreign investment and foreign aid to the sending countries is more likely to slow down migration from Eastern Europe to the EU than from Africa to the EU or from Latin America to the U.S. It may also worsen the skill composition of migration from Africa to the EU and from Latin America to the U.S. Two results hold, nevertheless: the South gains from trade liberalization in either the North or the South, and the North gains from imposing an immigration tax. The policy implications are clear: the South should liberalize trade, while the North should impose an (optimal) immigration tax.

Suggested Citation

  • Schiff, Maurice, 1996. "South-North migration and trade : a survey," Policy Research Working Paper Series 1696, The World Bank.
  • Handle: RePEc:wbk:wbrwps:1696

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. O'Rourke, Kevin H. & Williamson, Jeffrey G., 1997. "Around the European periphery 1870 1913: Globalization, schooling and growth," European Review of Economic History, Cambridge University Press, vol. 1(02), pages 153-190, August.
    2. Francisco L. Rivera-Batiz, 2018. "International Migration, Non-Traded Goods and Economic Welfare in the Source Country," World Scientific Book Chapters,in: International and Interregional Migration Theory and Evidence, chapter 5, pages 77-88 World Scientific Publishing Co. Pte. Ltd..
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Hoekman, Bernard & Messerlin, Patrick, 2002. "Initial conditions and incentives for Arab economic integration : can the European Community's success be emulated?," Policy Research Working Paper Series 2921, The World Bank.
    2. Riccardo Faini, 2002. "Développement, commerce international et migrations," Revue d’économie du développement, De Boeck Université, vol. 10(1), pages 85-116.
    3. Zhu, Nong & Luo, Xubei, 2008. "The impact of remittances on rural poverty and inequality in China," Policy Research Working Paper Series 4637, The World Bank.
    4. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," School of Economics Discussion Papers 0103, School of Economics, University of Surrey.
    5. Sule Akkoyunlu & Boriss Siliverstovs, 2006. "Modelling Turkish Migration to Germany," Discussion Papers of DIW Berlin 595, DIW Berlin, German Institute for Economic Research.
    6. Abdeslam Marfouk, 2008. "The African brain drain: scope and determinants," DULBEA Working Papers 08-07.RS, ULB -- Universite Libre de Bruxelles.


    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:wbk:wbrwps:1696. 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: (Roula I. Yazigi). General contact details of provider: .

    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.