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Migration and Regional Trade Agreements: A (New) Gravity Estimation

Figueiredo, Erik; Lima, Luiz Renato; Orefice, Gianluca (2016), Migration and Regional Trade Agreements: A (New) Gravity Estimation, Review of International Economics, 24, 1, p. 99-125. 10.1111/roie.12209

Type
Article accepté pour publication ou publié
Date
2016
Journal name
Review of International Economics
Volume
24
Number
1
Publisher
Wiley
Pages
99-125
Publication identifier
10.1111/roie.12209
Metadata
Show full item record
Author(s)
Figueiredo, Erik

Lima, Luiz Renato

Orefice, Gianluca
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Laboratoire d'Economie de Dauphine [LEDa]
Abstract (EN)
This paper investigates the role of regional trade agreements (RTAs) on bilateral international migration. Building on a gravity model for migration, our econometric strategy controls for the multilateral resistance to migration and solves the zero migration flows problem by using a censored quantile regression approach. Further, the endogeneity problem of RTAs in migration settlement is addressed by using instrumental variable censored quantile regression. Our results suggest that the presence of a RTA stimulates the migration stocks among member countries. The pro‐migration effect of RTAs is magnified if the agreement includes also provisions easing bureaucratic procedures for visa and asylum among member countries. Finally, we find an asymmetric effect of RTAs across the quantiles of the distribution of migration settlements.
Subjects / Keywords
Migration; Gravity Equation; Censored Quantile Regression
JEL
C13 - Estimation: General
C23 - Panel Data Models; Spatio-temporal Models
F22 - International Migration
F13 - Trade Policy; International Trade Organizations

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