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Gravity models of interprovincial migration flows in Canada with hierarchical multifactor structure

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  • Laura Serlenga

    (University of Bari)

  • Yongcheol Shin

    (University of York)

Abstract

Following recent contributions on migration flows, we contribute to the literature by relaxing restrictions on how multilateral resistance to migration (MRM) may affect province-pair-specific migration flows. We follow recent advancements in the three-dimensional (3D) panel data models with a hierarchical multifactor structure and develop the more flexible specification for MRM. In addition to including unobserved global (country) factors with province-pair-specific coefficients, we can control for local origin (destination)-specific factors that have heterogeneous effects on destinations (origins). We apply the 3DCCE estimator advanced by Kapetanios et al. (J Econom, 2020) to an analysis of the determinants of interprovincial migration flows in Canada from 1976 to 2014. In particular, we find that the recent rise in the internal migration flows, registered in Canada from 2009 onwards, is more likely to be associated with the relative income inequality and network presence rather than the conventional long-run determinants such as income and unemployment differentials.

Suggested Citation

  • Laura Serlenga & Yongcheol Shin, 2021. "Gravity models of interprovincial migration flows in Canada with hierarchical multifactor structure," Empirical Economics, Springer, vol. 60(1), pages 365-390, January.
    • Handle: RePEc:spr:empeco:v:60:y:2021:i:1:d:10.1007_s00181-020-01938-9
    DOI: 10.1007/s00181-020-01938-9
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    Cited by:

    1. Qi Li & Vasilis Sarafidis & Joakim Westerlund, 2021. "Essays in honor of Professor Badi H Baltagi," Empirical Economics, Springer, vol. 60(1), pages 1-11, January.
    2. Klöcker, J.A. & Daumann, F., 2023. "What drives migration to Germany? A panel data analysis," Research in Economics, Elsevier, vol. 77(2), pages 251-264.
    3. Li, Qi & Sarafidis, Vasilis & Westerlund, Joakim, 2020. "Essays in Honor of Professor Badi H Baltagi: Editorial," MPRA Paper 104751, University Library of Munich, Germany.
    4. Nusrate Aziz & Ahmed Aziz & Gerry Mahar, 2023. "Role of Provincial Migration and Immigration in Provincial Trade of Canada," JRFM, MDPI, vol. 16(7), pages 1-23, July.
    5. Emmanuel Apergis & Nicholas Apergis, 2022. "Reverse Immigration Effects for Expatriates in Oman During the COVID-19 Pandemic Shock," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 28(1), pages 19-37, May.

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    More about this item

    Keywords

    Multilateral resistance to migration cross section dependence; Multi-dimensional panel data models; Unobserved global and local factors; Interprovincial migration;
    All these keywords.

    JEL classification:

    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • F45 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Macroeconomic Issues of Monetary Unions

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