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International Trade and Migration: Why Do Migrants Choose Small Countries?

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  • Fedotenkov, Igor

Abstract

This paper analyses the link between migration and sizes of countries. It explains why larger countries (in terms of population) have lower shares of migrants in their populations. First, the data is analysed; next, a macroeconomic model with international trade and migration, explaining the stylised facts, is developed. The model includes country size, which gives rise to cheaper country-specific goods produced in a large country relative to the goods produced in a smaller country. Higher wages in the small country spur immigration to it.

Suggested Citation

  • Fedotenkov, Igor, 2015. "International Trade and Migration: Why Do Migrants Choose Small Countries?," MPRA Paper 66035, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:66035
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    File URL: https://mpra.ub.uni-muenchen.de/66035/1/MPRA_paper_66035.pdf
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    References listed on IDEAS

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    Cited by:

    1. Paudel, Nawaraj S. & Lahiri, Sajal, 2024. "Heterogeneity in the Effect of Size on Internal Migration in the United States: A Gravity Model and PPML Estimator Approach," EconStor Preprints 300726, ZBW - Leibniz Information Centre for Economics.

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    More about this item

    Keywords

    Country size; migration; international trade; population;
    All these keywords.

    JEL classification:

    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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