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International migration and trade agreements: The new role of PTAs

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  • Gianluca Orefice

Abstract

This paper provides an empirical analysis of the relationship between preferential trade agreements (PTAs) and bilateral migration flows. Building on the empirical literature on the determinants of migration flows, I estimate a modified gravity model to assess the role of PTAs and their content on bilateral migration flows. Using a sample of 29 OECD destination countries over the period 1998–2008, I show a strong positive effect of PTAs on bilateral migration flows. I find that the content of PTAs also matters: when visa‐and‐asylum and labour market related provisions are included in PTAs, this further stimulates bilateral migration flows. Different estimation strategies, including instrumental variables, are employed to address the potential endogeneity bias problems related to PTAs and their content. Ce travail vise à étudier la relation entre les accords commerciaux préférentiels (et leur contenu) et les entrées de migrants dans 29 pays de destination de l'OCDE sur la période 1998–2008. En utilisant le modèle de gravité, il examine l'effet des ACP sur les tailles des flux migratoires bilatéraux. Je trouve un effet positif des accords commerciaux préférentiels sur les flux migratoires : partager un ACP stimule les flux migratoires entre pays membres de près de 26,7%. Je considère également le contenu des ACP comme un déterminant de la migration, estimant que les dispositions sur les visas, le droit d'asile et l'accès au marché du travail (lorsqu'ils sont inclus dans les ACP) stimulent les flux migratoires bilatéraux.

Suggested Citation

  • Gianluca Orefice, 2015. "International migration and trade agreements: The new role of PTAs," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 48(1), pages 310-334, February.
    • Handle: RePEc:wly:canjec:v:48:y:2015:i:1:p:310-334
    DOI: 10.1111/caje.12122
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    3. Romano Piras, 2020. "Internal Migration in Italy: The Role of Migration Networks," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 6(1), pages 157-195, March.
    4. Beverelli, Cosimo & Orefice, Gianluca, 2019. "Migration deflection: The role of Preferential Trade Agreements," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    5. Edwin Le Heron & Nicolas Yol, 2019. "The macroeconomic effects of migrants' remittances in Moldova: a stock–flow consistent model," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 16(1), pages 31-54, April.
    6. MORIKAWA Masayuki, 2018. "Effects of Distance and Borders on International and Interregional Tourist Flows: A micro-gravity analysis," Discussion papers 18021, Research Institute of Economy, Trade and Industry (RIETI).
    7. Badi H. Baltagi & Peter Egger & Michael Pfaffermayr, 2014. "Panel Data Gravity Models of International Trade," CESifo Working Paper Series 4616, CESifo.
    8. Cosimo Beverelli, 2022. "Pull factors for migration: The impact of migrant integration policies," Economics and Politics, Wiley Blackwell, vol. 34(1), pages 171-191, March.
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    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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