"The Impact of Refugees on Per Capita Income" A Gravity Model Approach

Nico Stöckmann ()
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Nico Stöckmann: Paderborn University

No 99, Working Papers CIE from Paderborn University, CIE Center for International Economics

Abstract: I extend the bilateral Gravity Model of migration by Vanderkamp (1977) based on Newton's Law to a unilateral instrumental variable strategy for refugees, which is able to reflect time dependent shocks. Controlling for population size, trade openness, unemployment and the migrant stock in a panel data for subsequent members of the European Monetary Union in the short and mid run after the Balkan crisis leads to a significant negative impact of incoming refugees on the host country's per capita income.

Pages: 20 pages
Date: 2017-02
New Economics Papers: this item is included in nep-eec
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