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Migration and Regional Trade Agreements: A (New) Gravity Estimation
Author(s) -
Figueiredo Erik,
Lima Luiz Renato,
Orefice Gianluca
Publication year - 2016
Publication title -
review of international economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.513
H-Index - 58
eISSN - 1467-9396
pISSN - 0965-7576
DOI - 10.1111/roie.12209
Subject(s) - endogeneity , quantile regression , economics , gravity model of trade , instrumental variable , quantile , estimation , econometrics , distribution (mathematics) , settlement (finance) , international economics , payment , mathematics , finance , management , mathematical analysis
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.