Trade, Foreign Direct Investment and Immigration Policy Making in the US

47 Pages Posted: 4 Oct 2013

See all articles by Margaret Peters

Margaret Peters

Yale University - Department of Political Science

Date Written: October 2, 2013

Abstract

This paper argues that immigration policy formation in the US after 1950 can only be understood in the context of the increasing integration of world markets. Increasing trade openness has exposed firms that rely on immigrant labor to foreign competition and increased the likelihood that these firms fail. Increasing openness by other states to foreign direct investment allowed these same firms to move production overseas. Firms' choice to close their doors or to move overseas decreases their need for labor at home, leading them to spend their political capital on issues other than immigration. Their lack of support for open immigration, in turn, allows policymakers to restrict immigration. An examination of voting behavior on immigration in the US Senate shows that the integration of world capital and goods markets has had an important effect on the politics of immigration in the US and shows little support for existing theories of immigration policy formation. In addition to increasing our understanding of immigration policy, this paper, thus, sheds light on how trade openness and firms' choice of production location can affect their preference for other foreign economic policies as well as domestic policies such as labor, welfare and environmental policies.

Keywords: immigration, international political economy

Suggested Citation

Peters, Margaret, Trade, Foreign Direct Investment and Immigration Policy Making in the US (October 2, 2013). International Organization, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2335073

Margaret Peters (Contact Author)

Yale University - Department of Political Science ( email )

Box 208269
New Haven, DC 06520-8269
United States

HOME PAGE: http://margaretpeters.commons.yale.edu

Register to save articles to
your library

Register

Paper statistics

Downloads
112
rank
240,657
Abstract Views
554
PlumX Metrics
!

Under construction: SSRN citations while be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information