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Does rural development aid reduce international migration?

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  • Gamso, Jonas
  • Yuldashev, Farhod

Abstract

In recent years, interest has emerged in policy circles and among academics about the use of foreign aid to reduce international migration. Scholars have investigated this aid-migration nexus, but results have been mixed and questions remain. This paper contributes to the literature by comparing the effects of rural and urban development aid on international migration. Specifically, we hypothesize that while increases in rural development aid to developing countries reduce emigration from those countries, greater urban aid produces the opposite effect – higher rates of emigration. These hypotheses are informed by two theoretical mechanisms. The first mechanism focuses on the divergent preferences of rural and urban populations regarding emigration. Aid targeting these respective populations provides each with resources to follow through on their migratory ambitions, or lack thereof. The second mechanism focuses on contrasting impacts of rural and urban aid on agricultural sector development and the effects of this sort of development on emigration. We analyze cross-national time series data to test our hypotheses regarding rural and urban development aid, finding that countries that receive larger amounts of rural development aid have lower emigration rates. Then we turn to survey data from the Arab Barometer to assess whether the attitudes of survey respondents match our theorized mechanisms. Results from survey data suggest that investments in agricultural sector capacity building will lead to reductions in emigration from developing countries; however, these findings do not indicate that rural and urban populations differ in terms of their desire to emigrate.

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  • Gamso, Jonas & Yuldashev, Farhod, 2018. "Does rural development aid reduce international migration?," World Development, Elsevier, vol. 110(C), pages 268-282.
  • Handle: RePEc:eee:wdevel:v:110:y:2018:i:c:p:268-282
    DOI: 10.1016/j.worlddev.2018.05.035
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    Cited by:

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    3. Lanati, Mauro & Thiele, Rainer, 2020. "International Student Flows from Developing Countries: Do Donors Have an Impact?," Economics of Education Review, Elsevier, vol. 77(C).
    4. Paul Clist & Gabriele Restelli, 2021. "Development aid and international migration to Italy: Does aid reduce irregular flows?," The World Economy, Wiley Blackwell, vol. 44(5), pages 1281-1311, May.
    5. Ricardas Mileris, 2019. "Population Migration Flows in European Union: Economic Factors and Perspective Statistical Trends," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 17(2 (Summer), pages 163-188.
    6. Nurlinah, & Haryanto, & Sunardi,, 2020. "New development, old migration, and governance at two villages in Jeneponto, Indonesia," World Development Perspectives, Elsevier, vol. 19(C).
    7. Mauro Lanati & Rainer Thiele, 2021. "Aid for health, economic growth, and the emigration of medical workers," Journal of International Development, John Wiley & Sons, Ltd., vol. 33(7), pages 1112-1140, October.
    8. Ichaou Mounirou, 2022. "Do climatic factors induce rural migration? Empirical evidence from cotton farmers in Benin," Natural Resources Forum, Blackwell Publishing, vol. 46(4), pages 393-409, November.
    9. Fuchs, Andreas & Gröger, André & Heidland, Tobias & Wellner, Lukas, 2023. "The effect of foreign aid on migration: Global micro evidence from world bank projects," Kiel Working Papers 2257, Kiel Institute for the World Economy (IfW Kiel).
    10. Yao, Becatien & Shanoyan, Aleksan & Schwab, Ben & Amanor-Boadu, Vincent, 2023. "The role of mobile money in household resilience: Evidence from Kenya," World Development, Elsevier, vol. 165(C).
    11. Nimonka Bayale & Brigitte Kanga Kouassi, 2022. "The Devil is in the Details: On the Robust Determinants of Development Aid in G5 Sahel Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(4), pages 646-680, December.
    12. Lars Engberg‐Pedersen & Ida Marie Savio Vammen & Hans Lucht, 2024. "Can European foreign aid motivate people to stay in Africa? The root causes policy debate and irregular migration," Development Policy Review, Overseas Development Institute, vol. 42(3), May.
    13. Simplice Asongu & Nicholas M. Odhiambo, 2024. "The role of foreign aid in the nexus between capital flight and unemployment in sub-Saharan Africa," Working Papers 24/007, European Xtramile Centre of African Studies (EXCAS).
    14. Mauro Lanati & Rainer Thiele, 2020. "Foreign assistance and emigration: Accounting for the role of non‐transferred aid," The World Economy, Wiley Blackwell, vol. 43(7), pages 1951-1976, July.
    15. Diego F. Quintero Pulido & Marnix V. Ten Kortenaar & Johann L. Hurink & Gerard J.M. Smit, 2019. "The Role of Off-Grid Houses in the Energy Transition with a Case Study in the Netherlands," Energies, MDPI, vol. 12(10), pages 1-18, May.
    16. Dreher, Axel & Lang, Valentin & Reinsberg, Bernhard, 2024. "Aid effectiveness and donor motives," World Development, Elsevier, vol. 176(C).
    17. Jens Eger & Sebastian H. Schneider & Martin Bruder & Solveig H. Gleser, 2023. "Does Evidence Matter? The Impact of Evidence Regarding Aid Effectiveness on Attitudes Towards Aid," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(5), pages 1149-1172, October.
    18. Zhong Liu & Zuanjiu Zhou, 2022. "Rural centralized residence and labor migration: Evidence from China," Growth and Change, Wiley Blackwell, vol. 53(4), pages 1592-1608, December.
    19. Cirillo, Marinella & Cattaneo, Andrea & Miller, Meghan & Sadiddin, Ahmad, 2022. "Establishing the link between internal and international migration: Evidence from Sub-Saharan Africa," World Development, Elsevier, vol. 157(C).
    20. repec:wbk:wbrwps:9948 is not listed on IDEAS
    21. Jordi Ripollés & Inmaculada Martínez-Zarzoso, 2021. "African Asylum Seekers in Europe: The Interplay between Foreign Aid and Governance in Origin Countries," Open Economies Review, Springer, vol. 32(5), pages 829-865, November.
    22. Gabriele Restelli, 2021. "The effects of development aid on irregular migration to Europe: Deterrence or attraction?," Development Policy Review, Overseas Development Institute, vol. 39(6), pages 926-952, November.
    23. Gabriele Restelli, 2023. "Development and International Migration: The Effect of Income on Regular and Irregular Migration Intentions to Europe," Population and Development Review, The Population Council, Inc., vol. 49(1), pages 135-174, March.
    24. Lanati, Mauro & Thiele, Rainer, 2018. "Foreign assistance and migration choices: Disentangling the channels," Economics Letters, Elsevier, vol. 172(C), pages 148-151.
    25. Hennessy, Jack & Mortimer, Duncan & Sweeney, Rohan & Woode, Maame Esi, 2023. "Donor versus recipient preferences for aid allocation: A systematic review of stated-preference studies," Social Science & Medicine, Elsevier, vol. 334(C).

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