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The Estimation and Interpretation of Coefficients in Panel Gravity Models of Migration

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Abstract

We demonstrate that the conventional OLS and fixed effects estimators of gravity models of migration are biased, and that the interpretation of coefficients in the fixed effects model is typically incorrect. We present a new best linear unbiased estimator for gravity models of migration.

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  • Michael P. Cameron & Jacques Poot, 2018. "The Estimation and Interpretation of Coefficients in Panel Gravity Models of Migration," Working Papers in Economics 18/01, University of Waikato.
    • Handle: RePEc:wai:econwp:18/01
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    File URL: https://repec.its.waikato.ac.nz/wai/econwp/1801.pdf
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    1. Lewer, Joshua J. & Van den Berg, Hendrik, 2008. "A gravity model of immigration," Economics Letters, Elsevier, vol. 99(1), pages 164-167, April.
    2. Richard Baldwin & Daria Taglioni, 2006. "Gravity for Dummies and Dummies for Gravity Equations," NBER Working Papers 12516, National Bureau of Economic Research, Inc.
    3. Poot, Jacques & Alimi, Omoniyi & Cameron, Michael P. & Maré, David C., 2016. "The gravity model of migration: the successful comeback of an ageing superstar in regional science," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 36, pages 63-86.
    4. Ludo Peeters, 2012. "Gravity And Spatial Structure: The Case Of Interstate Migration In Mexico," Journal of Regional Science, Wiley Blackwell, vol. 52(5), pages 819-856, December.
    5. Roberto Patuelli & Giuseppe Arbia (ed.), 2016. "Spatial Econometric Interaction Modelling," Advances in Spatial Science, Springer, number 978-3-319-30196-9.
    6. Michael Beenstock & Daniel Felsenstein, 2016. "Double Spatial Dependence in Gravity Models: Migration from the European Neighborhood to the European Union," Advances in Spatial Science, in: Roberto Patuelli & Giuseppe Arbia (ed.), Spatial Econometric Interaction Modelling, chapter 0, pages 225-251, Springer.
    7. James E. Anderson & Eric van Wincoop, 2003. "Gravity with Gravitas: A Solution to the Border Puzzle," American Economic Review, American Economic Association, vol. 93(1), pages 170-192, March.
    8. Ivan Etzo, 2011. "The Determinants Of The Recent Interregional Migration Flows In Italy: A Panel Data Analysis," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 948-966, December.
    9. Ron Boschma & Simona Iammarino & Raffaele Paci & Jordy Suriñach & Raul Ramos & Jordi Suriñach, 2017. "A Gravity Model of Migration Between the ENC and the EU," Tijdschrift voor Economische en Sociale Geografie, Royal Dutch Geographical Society KNAG, vol. 108(1), pages 21-35, February.
    10. Aldashev, Alisher & Dietz, Barbara, 2014. "Economic and spatial determinants of interregional migration in Kazakhstan," Economic Systems, Elsevier, vol. 38(3), pages 379-396.
    11. Gopinath, G. & Helpman, . & Rogoff, K. (ed.), 2014. "Handbook of International Economics," Handbook of International Economics, Elsevier, edition 1, volume 4, number 4.
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    Cited by:

    1. Lucie Kurekova, 2022. "Regional migration and the dimension of distance in empirical analysis," International Journal of Economic Sciences, European Research Center, vol. 11(2), pages 80-91, November.
    2. Rosmaiza A. Ghani & Michael P. Cameron & William Cochrane & Matthew Roskruge, 2019. "A Gravity Model Estimation of the Bi-Directional Relationship between International Trade and Migration," Working Papers in Economics 19/02, University of Waikato.

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    More about this item

    Keywords

    gross migration flows; gravity model; New Zealand;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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