Do migrants believe in market potential?

Matthieu Crozet

Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1)

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: Increasing returns; market potential; agglomeration; migrations; economic geography (search for similar items in EconPapers)
JEL-codes: F12 L11 R12 R23 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2000-03
References: Add references at CitEc
Citations:

Downloads: (external link)
https://shs.hal.science/halshs-03721418 (application/pdf)

Related works:
Working Paper: Do migrants believe in market potential? (2000)
Working Paper: Do migrants believe in market potential? (2000)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mse:wpsorb:bla00030

Access Statistics for this paper

More papers in Cahiers de la Maison des Sciences Economiques from Université Panthéon-Sorbonne (Paris 1) Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().