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Migration, Specialization, and Trade: Evidence from the Brazilian March to the West

Author

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  • Heitor S. Pellegrina

    (NYU Abu Dhabi)

  • Sebastian Sotelo

    (University of Michigan)

Abstract

Exploiting a large migration of farmers to the West of Brazil between 1950 and 2010, we study how migration shapes aggregate and regional comparative advantage. We document that farmers emigrating from regions with high employment in an activity are more likely to work in that activity and have higher income than other migrants doing so. We incorporate this heterogeneity into a quantitative model and find that, by reshaping comparative advantage, declines in migration costs contributed substantially to Brazil's rise as a leading commodity exporter. Opportunities to migrate, moreover, account for a substantial share of the gains from trade.

Suggested Citation

  • Heitor S. Pellegrina & Sebastian Sotelo, 2021. "Migration, Specialization, and Trade: Evidence from the Brazilian March to the West," Working Papers 681, Research Seminar in International Economics, University of Michigan.
    • Handle: RePEc:mie:wpaper:681
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    Cited by:

    1. Takeda, Kohei, 2022. "The geography of structural transformation: effects on inequality and mobility," LSE Research Online Documents on Economics 118050, London School of Economics and Political Science, LSE Library.
    2. Fabian Eckert & Michael Peters, 2018. "Spatial Structural Change," 2018 Meeting Papers 98, Society for Economic Dynamics.
    3. Hanson, Gordon & Liu, Chen, 2023. "Immigration and occupational comparative advantage," Journal of International Economics, Elsevier, vol. 145(C).
    4. Remi Jedwab & Federico Haslop & Roman Zarate & Carlos Rodriguez-Castelan, 2023. "The Effects of Climate Change in the Poorest Countries: Evidence from the Permanent Shrinking of Lake Chad," Working Papers 2023-06, The George Washington University, Institute for International Economic Policy.
    5. Ponticelli, Jacopo & Bustos, Paula & Castro-Vincenzi, Juan & Monras, Joan, 2018. "Industrialization without Innovation," CEPR Discussion Papers 13379, C.E.P.R. Discussion Papers.
    6. Brian C. Fujiy, 2024. "The Geography of Inventors and Local Knowledge Spillovers in R&D," Working Papers 24-59, Center for Economic Studies, U.S. Census Bureau.
    7. Florio, Erminia & Manfredonia, Stefano, 2021. "Ancestors, inter-generational transmission of attitudes, and corporate performance: Evidence from the Italian Mass Migration," GLO Discussion Paper Series 830, Global Labor Organization (GLO).
    8. Marein, Brian, 2022. "Colonial Roads and Regional Inequality," Journal of Urban Economics, Elsevier, vol. 131(C).
    9. Gáfaro, Margarita & Pellegrina, Heitor S., 2022. "Trade, farmers’ heterogeneity, and agricultural productivity: Evidence from Colombia," Journal of International Economics, Elsevier, vol. 137(C).
    10. Wookun Kim, 2023. "Migration, Commuting, and the Spatial Distribution of Public Spending," Departmental Working Papers 2305, Southern Methodist University, Department of Economics.

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    More about this item

    Keywords

    International Trade; Migration; Comparative Advantage;
    All these keywords.

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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