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Labour Migration and International Trade

Author

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  • James Anderson

Abstract

This paper explores the relationship between trade and migration. Both theoretical and empirical studies suggest that bilateral migration triggers bilateral trade. More recent studies find in addition that the impact of trade on international labour migration is positive and statistically significant. To study the inter-relationships between migration and trade, we develop a novel general equilibrium model of international trade and labour migration, featuring both trade and migration frictions. We estimate the model for EU-28 Member States. We apply the model to examine differences in the response of EU economies to macroeconomics shocks such as the recent financial and macroeconomic crisis. Our results suggest that not only migration affects trade, but also bilateral trade affects labour migration.

Suggested Citation

  • James Anderson, 2015. "Labour Migration and International Trade," Journal of Economics and Econometrics, Economics and Econometrics Society, vol. 58(3), pages 1-29.
    • Handle: RePEc:eei:journl:v:58:y:2015:i:3:p:1-29
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    Citations

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    Cited by:

    1. Pavel Ciaian & d'Artis Kancs, 2015. "Assessing the Social and Macroeconomic Impacts of Labour Market Integration: A Holistic Approach," JRC Research Reports JRC99645, Joint Research Centre.

    More about this item

    Keywords

    Labour migration; international trade; migration costs; trade costs; growth.;
    All these keywords.

    JEL classification:

    • E25 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Aggregate Factor Income Distribution
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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