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International Migration and Trade Agreements: the new role of PTAs

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  • Gianluca Orefice

Abstract

This paper investigates empirically the role of Preferential Trade Agreements (PTAs) as determinants of migration inflows for 29 OECD countries in the period 1998-2008. By increasing information about signatory countries, PTAs are expected to drive migration flows towards member countries. Building on the empirical literature on the determinants of migration, I estimate a modified gravity model on migration flows providing evidence of a strong positive effect of PTAs on bilateral migration flows. I also consider the content of PTAs as a further determinant of migration, finding that visa-and-asylum and labour market related provisions, when included in PTAs, stimulate bilateral migration flows. Finally, by comparing the average effects of PTAs on migration flows and on trade, I show that PTAs stimulate bilateral migration flows more than trade in final goods. PTAs might be used by government to increase inflows of immigrant workers in the case of labour shortages or population ageing.

Suggested Citation

  • Gianluca Orefice, 2013. "International Migration and Trade Agreements: the new role of PTAs," FIW Working Paper series 111, FIW.
    • Handle: RePEc:wsr:wpaper:y:2013:i:111
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    References listed on IDEAS

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    Cited by:

    1. Jayjit Roy, 2014. "On the robustness of the trade-inducing effects of trade agreements and currency unions," Empirical Economics, Springer, vol. 47(1), pages 253-304, August.

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    More about this item

    Keywords

    International Migration; Trade Policy; Migration Policy; PTAs;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F53 - International Economics - - International Relations, National Security, and International Political Economy - - - International Agreements and Observance; International Organizations
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions

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