Migration, Trade, and Foreign Direct Investment in Mexico

Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it will increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States (U.S.). Since poor data on illegal migrat...

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Main Authors:	Aroca, Patricio, Maloney, William F.
Format:	Journal Article
Language:	English en_US
Published:	Oxford University Press on behalf of the World Bank 2013
Subjects:	ARBITRAGE ASYMMETRIC INFORMATION BULLETIN CENSUS OF POPULATION CENTRAL BANK CONSUMER PRICE INDEX COST OF LIVING CREATING JOBS CULTURAL CHANGE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS EARNING ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC INTEGRATION ECONOMIC RESEARCH ECONOMICS OF IMMIGRATION EDUCATIONAL ATTAINMENT ELASTICITY EMPLOYMENT GROWTH EMPLOYMENT LEVELS EQUILIBRIUM WAGES EXCESS SUPPLY EXPECTED WAGES EXPORTS EXTERNALITIES FAMILY RESPONSIBILITIES FISCAL POLICY FOREIGN DIRECT INVESTMENT FREE TRADE FUTURE GROWTH GDP GDP PER CAPITA HEALTH INFRASTRUCTURE HOSPITAL HOSPITAL BEDS HOUSEHOLD INCOME HOUSING HUMAN RESOURCES ILLEGAL IMMIGRATION IMMIGRATION IMMIGRATION REFORM IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INNOVATIONS INTERNAL MIGRATION INTERNATIONAL MIGRATION INTERNATIONAL MIGRATION REVIEW INTERNATIONAL TRADE JOB SEARCH LABOR FORCE LABOR MARKET LABOR MARKET IMPACT LABOR MARKET VARIABLES LABOR MARKETS LABOR MIGRATION LABOR STATISTICS LABOR SUPPLY LABOUR LABOUR FORCE LDCS LIQUIDITY LOCAL LABOR MARKET MIGRANT MIGRANTS MIGRATION MIGRATION DATA MIGRATION FLOWS MORTALITY MUNICIPALITIES NOMINAL WAGES NURSES OPPORTUNITY COSTS PER CAPITA INCOME POLICY ANALYSIS POLICY RESEARCH POLITICAL ECONOMY PREVIOUS STUDIES PURCHASING POWER PURCHASING POWER PARITY QUALITY OF LIFE REAL WAGE RENTS RESPECT RETIREMENT SAVINGS SECONDARY SCHOOLS SKILLED WORKERS SOCIAL SECURITY SPILLOVER SPOUSE STATE UNIVERSITY SUBSTITUTION EFFECT SUBSTITUTION EFFECTS TRADE FLOWS TRADE LIBERALIZATION TRANSPORT TRANSPORTATION UNDOCUMENTED IMMIGRANTS UNDOCUMENTED IMMIGRATION UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNSKILLED WORKERS URBAN AREAS URBAN EMPLOYMENT URBAN EMPLOYMENT SURVEY UTILITY FUNCTION UTILITY THEORY VALUE ADDED WAGE DIFFERENTIALS WAGE EFFECT WAGE GROWTH WAGE LEVEL WAGE RATE WAGES WEALTH WORKER YOUNG MEN
Online Access:	http://documents.worldbank.org/curated/en/2005/09/17752995/migration-trade-foreign-direct-investment-mexico http://hdl.handle.net/10986/16433

id	okr-10986-16433
recordtype	oai_dc
spelling	okr-10986-164332021-04-23T14:03:29Z Migration, Trade, and Foreign Direct Investment in Mexico Aroca, Patricio Maloney, William F. ARBITRAGE ASYMMETRIC INFORMATION BULLETIN CENSUS OF POPULATION CENTRAL BANK CONSUMER PRICE INDEX COST OF LIVING CREATING JOBS CULTURAL CHANGE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS EARNING ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC INTEGRATION ECONOMIC RESEARCH ECONOMICS OF IMMIGRATION EDUCATIONAL ATTAINMENT ELASTICITY EMPLOYMENT GROWTH EMPLOYMENT LEVELS EQUILIBRIUM WAGES EXCESS SUPPLY EXPECTED WAGES EXPORTS EXTERNALITIES FAMILY RESPONSIBILITIES FISCAL POLICY FOREIGN DIRECT INVESTMENT FREE TRADE FUTURE GROWTH GDP GDP PER CAPITA HEALTH INFRASTRUCTURE HOSPITAL HOSPITAL BEDS HOUSEHOLD INCOME HOUSING HUMAN RESOURCES ILLEGAL IMMIGRATION IMMIGRATION IMMIGRATION REFORM IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INNOVATIONS INTERNAL MIGRATION INTERNATIONAL MIGRATION INTERNATIONAL MIGRATION REVIEW INTERNATIONAL TRADE JOB SEARCH LABOR FORCE LABOR MARKET LABOR MARKET IMPACT LABOR MARKET VARIABLES LABOR MARKETS LABOR MIGRATION LABOR STATISTICS LABOR SUPPLY LABOUR LABOUR FORCE LDCS LIQUIDITY LOCAL LABOR MARKET MIGRANT MIGRANTS MIGRATION MIGRATION DATA MIGRATION FLOWS MORTALITY MUNICIPALITIES NOMINAL WAGES NURSES OPPORTUNITY COSTS PER CAPITA INCOME POLICY ANALYSIS POLICY RESEARCH POLITICAL ECONOMY PREVIOUS STUDIES PURCHASING POWER PURCHASING POWER PARITY QUALITY OF LIFE REAL WAGE RENTS RESPECT RETIREMENT SAVINGS SECONDARY SCHOOLS SKILLED WORKERS SOCIAL SECURITY SPILLOVER SPOUSE STATE UNIVERSITY SUBSTITUTION EFFECT SUBSTITUTION EFFECTS TRADE FLOWS TRADE LIBERALIZATION TRANSPORT TRANSPORTATION UNDOCUMENTED IMMIGRANTS UNDOCUMENTED IMMIGRATION UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNSKILLED WORKERS URBAN AREAS URBAN EMPLOYMENT URBAN EMPLOYMENT SURVEY UTILITY FUNCTION UTILITY THEORY VALUE ADDED WAGE DIFFERENTIALS WAGE EFFECT WAGE GROWTH WAGE LEVEL WAGE RATE WAGES WEALTH WORKER YOUNG MEN Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it will increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States (U.S.). Since poor data on illegal migration to the United States make direct measurement difficult, data on migration within Mexico, where census data permit careful analysis, are used instead to evaluate the mechanism behind predictions on migration to the United States. Specifications are provided for migration within Mexico, incorporating measures of cost of living, amenities, and networks. Contrary to much of the literature, labor market variables enter very significantly and as predicted once possible credit constraint effects are controlled for. Greater exposure to FDI and trade deters outmigration, with the effects working partly through the labor market. Finally, some tentative inferences are presented about the impact of increased FDI on Mexico- U.S. migration. On average, a doubling of FDI inflows leads to a 1.5 to 2 percent drop in migration. 2013-12-20T20:15:58Z 2013-12-20T20:15:58Z 2005-09-01 Journal Article http://documents.worldbank.org/curated/en/2005/09/17752995/migration-trade-foreign-direct-investment-mexico World Bank Economic Review doi:10.1093/wber/lhi017 http://hdl.handle.net/10986/16433 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Oxford University Press on behalf of the World Bank Publications & Research :: Journal Article Publications & Research :: Journal Article Latin America & Caribbean Mexico
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	ARBITRAGE ASYMMETRIC INFORMATION BULLETIN CENSUS OF POPULATION CENTRAL BANK CONSUMER PRICE INDEX COST OF LIVING CREATING JOBS CULTURAL CHANGE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS EARNING ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC INTEGRATION ECONOMIC RESEARCH ECONOMICS OF IMMIGRATION EDUCATIONAL ATTAINMENT ELASTICITY EMPLOYMENT GROWTH EMPLOYMENT LEVELS EQUILIBRIUM WAGES EXCESS SUPPLY EXPECTED WAGES EXPORTS EXTERNALITIES FAMILY RESPONSIBILITIES FISCAL POLICY FOREIGN DIRECT INVESTMENT FREE TRADE FUTURE GROWTH GDP GDP PER CAPITA HEALTH INFRASTRUCTURE HOSPITAL HOSPITAL BEDS HOUSEHOLD INCOME HOUSING HUMAN RESOURCES ILLEGAL IMMIGRATION IMMIGRATION IMMIGRATION REFORM IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INNOVATIONS INTERNAL MIGRATION INTERNATIONAL MIGRATION INTERNATIONAL MIGRATION REVIEW INTERNATIONAL TRADE JOB SEARCH LABOR FORCE LABOR MARKET LABOR MARKET IMPACT LABOR MARKET VARIABLES LABOR MARKETS LABOR MIGRATION LABOR STATISTICS LABOR SUPPLY LABOUR LABOUR FORCE LDCS LIQUIDITY LOCAL LABOR MARKET MIGRANT MIGRANTS MIGRATION MIGRATION DATA MIGRATION FLOWS MORTALITY MUNICIPALITIES NOMINAL WAGES NURSES OPPORTUNITY COSTS PER CAPITA INCOME POLICY ANALYSIS POLICY RESEARCH POLITICAL ECONOMY PREVIOUS STUDIES PURCHASING POWER PURCHASING POWER PARITY QUALITY OF LIFE REAL WAGE RENTS RESPECT RETIREMENT SAVINGS SECONDARY SCHOOLS SKILLED WORKERS SOCIAL SECURITY SPILLOVER SPOUSE STATE UNIVERSITY SUBSTITUTION EFFECT SUBSTITUTION EFFECTS TRADE FLOWS TRADE LIBERALIZATION TRANSPORT TRANSPORTATION UNDOCUMENTED IMMIGRANTS UNDOCUMENTED IMMIGRATION UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNSKILLED WORKERS URBAN AREAS URBAN EMPLOYMENT URBAN EMPLOYMENT SURVEY UTILITY FUNCTION UTILITY THEORY VALUE ADDED WAGE DIFFERENTIALS WAGE EFFECT WAGE GROWTH WAGE LEVEL WAGE RATE WAGES WEALTH WORKER YOUNG MEN
spellingShingle	ARBITRAGE ASYMMETRIC INFORMATION BULLETIN CENSUS OF POPULATION CENTRAL BANK CONSUMER PRICE INDEX COST OF LIVING CREATING JOBS CULTURAL CHANGE DEVELOPING COUNTRIES DEVELOPMENT ECONOMICS EARNING ECONOMETRICS ECONOMIC ANALYSIS ECONOMIC INTEGRATION ECONOMIC RESEARCH ECONOMICS OF IMMIGRATION EDUCATIONAL ATTAINMENT ELASTICITY EMPLOYMENT GROWTH EMPLOYMENT LEVELS EQUILIBRIUM WAGES EXCESS SUPPLY EXPECTED WAGES EXPORTS EXTERNALITIES FAMILY RESPONSIBILITIES FISCAL POLICY FOREIGN DIRECT INVESTMENT FREE TRADE FUTURE GROWTH GDP GDP PER CAPITA HEALTH INFRASTRUCTURE HOSPITAL HOSPITAL BEDS HOUSEHOLD INCOME HOUSING HUMAN RESOURCES ILLEGAL IMMIGRATION IMMIGRATION IMMIGRATION REFORM IMPERFECT COMPETITION INCREASING RETURNS INCREASING RETURNS TO SCALE INNOVATIONS INTERNAL MIGRATION INTERNATIONAL MIGRATION INTERNATIONAL MIGRATION REVIEW INTERNATIONAL TRADE JOB SEARCH LABOR FORCE LABOR MARKET LABOR MARKET IMPACT LABOR MARKET VARIABLES LABOR MARKETS LABOR MIGRATION LABOR STATISTICS LABOR SUPPLY LABOUR LABOUR FORCE LDCS LIQUIDITY LOCAL LABOR MARKET MIGRANT MIGRANTS MIGRATION MIGRATION DATA MIGRATION FLOWS MORTALITY MUNICIPALITIES NOMINAL WAGES NURSES OPPORTUNITY COSTS PER CAPITA INCOME POLICY ANALYSIS POLICY RESEARCH POLITICAL ECONOMY PREVIOUS STUDIES PURCHASING POWER PURCHASING POWER PARITY QUALITY OF LIFE REAL WAGE RENTS RESPECT RETIREMENT SAVINGS SECONDARY SCHOOLS SKILLED WORKERS SOCIAL SECURITY SPILLOVER SPOUSE STATE UNIVERSITY SUBSTITUTION EFFECT SUBSTITUTION EFFECTS TRADE FLOWS TRADE LIBERALIZATION TRANSPORT TRANSPORTATION UNDOCUMENTED IMMIGRANTS UNDOCUMENTED IMMIGRATION UNEMPLOYED UNEMPLOYMENT UNEMPLOYMENT RATE UNEMPLOYMENT RATES UNSKILLED WORKERS URBAN AREAS URBAN EMPLOYMENT URBAN EMPLOYMENT SURVEY UTILITY FUNCTION UTILITY THEORY VALUE ADDED WAGE DIFFERENTIALS WAGE EFFECT WAGE GROWTH WAGE LEVEL WAGE RATE WAGES WEALTH WORKER YOUNG MEN Aroca, Patricio Maloney, William F. Migration, Trade, and Foreign Direct Investment in Mexico
geographic_facet	Latin America & Caribbean Mexico
description	Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it will increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States (U.S.). Since poor data on illegal migration to the United States make direct measurement difficult, data on migration within Mexico, where census data permit careful analysis, are used instead to evaluate the mechanism behind predictions on migration to the United States. Specifications are provided for migration within Mexico, incorporating measures of cost of living, amenities, and networks. Contrary to much of the literature, labor market variables enter very significantly and as predicted once possible credit constraint effects are controlled for. Greater exposure to FDI and trade deters outmigration, with the effects working partly through the labor market. Finally, some tentative inferences are presented about the impact of increased FDI on Mexico- U.S. migration. On average, a doubling of FDI inflows leads to a 1.5 to 2 percent drop in migration.
format	Journal Article
author	Aroca, Patricio Maloney, William F.
author_facet	Aroca, Patricio Maloney, William F.
author_sort	Aroca, Patricio
title	Migration, Trade, and Foreign Direct Investment in Mexico
title_short	Migration, Trade, and Foreign Direct Investment in Mexico
title_full	Migration, Trade, and Foreign Direct Investment in Mexico
title_fullStr	Migration, Trade, and Foreign Direct Investment in Mexico
title_full_unstemmed	Migration, Trade, and Foreign Direct Investment in Mexico
title_sort	migration, trade, and foreign direct investment in mexico
publisher	Oxford University Press on behalf of the World Bank
publishDate	2013
url	http://documents.worldbank.org/curated/en/2005/09/17752995/migration-trade-foreign-direct-investment-mexico http://hdl.handle.net/10986/16433
_version_	1764433285887295488

Migration, Trade, and Foreign Direct Investment in Mexico

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