How Foreign Aid Affects Migration: Quantifying Transmission Channels

Léa Marchal (), Claire Naiditch and Betül Simsek

Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) from HAL

Abstract: This is the first global study that quantifies the transmission channels through which foreign aid impacts migration to donor countries. We estimate a gravity model derived from a RUM model, using OECD data between 2011 and 2019 and an instrumentation strategy. Our identification takes advantage of data on multilateral aid provided by multilateral agencies which is non-donor specific. We find evidence that aid donated by a country increases migration to that country through an information channel. If that channel were the only one at play, a 1% increase in bilateral aid would induce a 0.17% increase in migration. In addition, a 1% increase in multilateral aid reduces migration from the less poor origin countries by 0.05% via a development channel.

Keywords: Aid; Gravity; Migration (search for similar items in EconPapers)
Date: 2022-11
New Economics Papers: this item is included in nep-dev and nep-int
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03887455v1
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Published in 2022

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Related works:
Working Paper: How Foreign Aid Affects Migration: Quantifying Transmission Channels (2023)
Working Paper: How Foreign Aid Affects Migration: Quantifying Transmission Channels (2022)
Working Paper: How Foreign Aid Affects Migration: Quantifying Transmission Channels (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:cesptp:halshs-03887455

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