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

27 Pages Posted: 20 Jan 2016

See all articles by Erik Figueiredo

Erik Figueiredo

Federal University of Paraiba (UFPB)

Luiz Renato Lima

University of Tennessee, Knoxville

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Date Written: February 2016

Abstract

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.

Suggested Citation

Figueiredo, Erik and Lima, Luiz Renato and Orefice, Gianluca, Migration and Regional Trade Agreements: A (New) Gravity Estimation (February 2016). Review of International Economics, Vol. 24, Issue 1, pp. 99-125, 2016, Available at SSRN: https://ssrn.com/abstract=2718693 or http://dx.doi.org/10.1111/roie.12209

Erik Figueiredo (Contact Author)

Federal University of Paraiba (UFPB) ( email )

Cidade Universitária
s/n - Castelo Branco III
João Pessoa, Paraíba 58051-900
Brazil

Luiz Renato Lima

University of Tennessee, Knoxville ( email )

Knoxville, TN 37996
United States

Gianluca Orefice

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII) ( email )

9 rue Georges Pitard
Paris Cedex 15, F-75015
France

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