Do migrants believe in market potential?

Matthieu Crozet

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Abstract: New economic geography models predict migration flows peripheral regions toward central ones. Agglomeration occurs in these models because firms, which tend to locate in large demand regions, and workers, who look for high real wages, are driven by the same force defined by the market potential function. As in Hanson [1998], we estimate this function and thereby all the parameters of the standard economic geography model. However Hanson estimated an equation of wage determination, whereas we study the market potential through a much more central relation of the model. We estimate the worker motion law on inter-regional migrations data for live European countries. The migrant flow received by a region increases with its market potential, which confirms the global relevance of the economic geography model. Moreover main parameters estimates are consistent with the theoretical framework.

Keywords: market potential; agglomeration; migrations; economic geography (search for similar items in EconPapers)
Date: 2000-03
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03721418
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Citations: View citations in EconPapers (10)

Published in 2000

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Working Paper: Do migrants believe in market potential? (2000)
Working Paper: Do migrants believe in market potential? (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-03721418

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