Managing Migration Flows Through Foreign Aid

Léa Marchal (), Claire Naiditch and Betül Simsek

No 46, ILE Working Paper Series from University of Hamburg, Institute of Law and Economics

Abstract: This paper investigates through which channels foreign aid impacts migration to donor countries. To disentangle the non-donor-specific channels (development and credit constraint channels) from the donor-specific channels (information and instrumentation channels), we use the fact that multilateral aid is not donor-specific contrary to bilateral aid. We estimate a gravity model derived from a RUM model of migration using an IV-2SLS strategy and the DEMIG-C2C and AidData datasets. We find that aid donated by a country increases migration to that donor through an information channel and especially for the poorest recipient countries. In addition, we find that aid weakly reduces migration to any country via a development channel.

Keywords: Aid; Gravity; Migration (search for similar items in EconPapers)
JEL-codes: F22 F35 O15 (search for similar items in EconPapers)
Date: 2021
New Economics Papers: this item is included in nep-dev, nep-int and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ilewps:46

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