Labour Migration and International Trade

James Anderson

Journal of Economics and Econometrics, 2015, vol. 58, issue 3, 1-29

Abstract: This paper explores the relationship between trade and migration. Both theoretical and empirical studies suggest that bilateral migration triggers bilateral trade. More recent studies find in addition that the impact of trade on international labour migration is positive and statistically significant. To study the inter-relationships between migration and trade, we develop a novel general equilibrium model of international trade and labour migration, featuring both trade and migration frictions. We estimate the model for EU-28 Member States. We apply the model to examine differences in the response of EU economies to macroeconomics shocks such as the recent financial and macroeconomic crisis. Our results suggest that not only migration affects trade, but also bilateral trade affects labour migration.

Keywords: Labour migration; international trade; migration costs; trade costs; growth. (search for similar items in EconPapers)
JEL-codes: E25 F22 J61 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (1)

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