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Gravity model estimates of the spatial determinants of trade, migration, and trade-and-migration policies

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  • Freeman, Rebecca
  • Lewis, John

Abstract

Using a gravity model, we explore the effects of distance and borders on trade, migration, and trade-and-migration policies and document three key differences between trade and migration patterns in otherwise equivalent specifications. Regional trade (freedom-of-movement) agreements boost trade (migration) less (more) the more distant the country pairs. Distance effects on trade (migration) decrease (are unchanged) over time. International border effects on trade (migration) decrease (are unchanged) over time.

Suggested Citation

  • Freeman, Rebecca & Lewis, John, 2021. "Gravity model estimates of the spatial determinants of trade, migration, and trade-and-migration policies," Economics Letters, Elsevier, vol. 204(C).
    • Handle: RePEc:eee:ecolet:v:204:y:2021:i:c:s0165176521001506
    DOI: 10.1016/j.econlet.2021.109873
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    References listed on IDEAS

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    Cited by:

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    2. Jia, Zhijie & Wen, Shiyan & Wang, Yao, 2023. "Power coming from the sky: Economic benefits of inter-regional power transmission in China," Energy Economics, Elsevier, vol. 119(C).
    3. Pan, Wei-Fong, 2023. "The effect of populism on high-skilled migration: Evidence from inventors," European Journal of Political Economy, Elsevier, vol. 79(C).
    4. Celebi, Ismail, 2024. "Border effect in railway transport in Central Europe," OSF Preprints jqctz, Center for Open Science.
    5. Jia, Zhijie & Wen, Shiyan & Sun, Zao, 2022. "Current relationship between coal consumption and the economic development and China's future carbon mitigation policies," Energy Policy, Elsevier, vol. 162(C).
    6. Xufeng Cui & Cuicui Liu & Ling Shan & Jiaqi Lin & Jing Zhang & Yuehua Jiang & Guanghong Zhang, 2021. "Spatial-Temporal Responses of Ecosystem Services to Land Use Transformation Driven by Rapid Urbanization: A Case Study of Hubei Province, China," IJERPH, MDPI, vol. 19(1), pages 1-19, December.
    7. Pingkuo Liu & Kailing Guo & Jiahao Wu, 2024. "Research on Alternative Relationship between Chinese Renewable Energy and Imported Coal for China," Sustainability, MDPI, vol. 16(8), pages 1-21, April.
    8. Satoshi Shimizutani & Eiji Yamada, 2023. "Transformation of international migrants in head wind: Evidence from Tajikistan in the 2010s," Review of Development Economics, Wiley Blackwell, vol. 27(1), pages 525-549, February.

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    More about this item

    Keywords

    Regional trade agreements; Freedom-of-movement agreements; Distance puzzle; Migration; Globalization;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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