Migration, Trade, and Foreign Direct Investment in Mexico
Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it would increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States. Since poor data on illegal flows to the United States make direct measurement difficult, Ar...
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| Format: | Policy Research Working Paper |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2005/05/5795848/migration-trade-foreign-investment-mexico http://hdl.handle.net/10986/8930 |
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okr-10986-89302021-04-23T14:02:42Z Migration, Trade, and Foreign Direct Investment in Mexico Aroca Gonzalez, Patricio Maloney, William F. APPREHENSION ARBITRAGE ASYMMETRIC INFORMATION BALANCE OF PAYMENTS CENTRAL BANK COST OF LIVING CPI DEMOGRAPHICS DEVELOPED COUNTRIES DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC INTEGRATION ECONOMIC RESEARCH ELASTICITIES ELASTICITY EMIGRATION EMPIRICAL EVIDENCE EQUILIBRIUM EXCESS SUPPLY EXPORTS EXTERNALITIES FAMILIES FREE TRADE HOSPITALS HOUSING IMMIGRATION IMPORTS INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE LABOR FORCE LABOR MARKETS LATIN AMERICAN LDCS LIQUIDITY LIQUIDITY/WEALTH MIGRANTS MIGRATION MORTALITY MUNICIPALITIES NURSES OIL OPPORTUNITY COSTS PER CAPITA INCOME POLITICAL ECONOMY PRICE INDEXES PROJECT REPORT PUBLIC GOODS QUALITY OF LIFE RETIREMENT SAVINGS SECONDARY SCHOOLS SUBSTITUTION EFFECT TRADE FLOWS TRADE LIBERALIZATION TRADE/FDI TRADE/INVESTMENT TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATES UTILITY FUNCTION UTILITY THEORY VALUE ADDED WAGE DIFFERENTIALS WAGES WEALTH WEALTH/LIQUIDITY WORKERS Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it would increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States. Since poor data on illegal flows to the United States make direct measurement difficult, Aroca and Maloney instead evaluate the mechanism behind these predictions using data on migration within Mexico where the census data permit careful analysis. They offer the first specifications 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 the authors control for possible credit constraint effects. Greater exposure to FDI and trade deters out-migration with the effects working partly through the labor market. Finally, the authors generate some tentative inferences about the impact on increased FDI on Mexico-U.S. migration. On average, a doubling of FDI inflows leads to a 1.5-2 percent fall in migration. 2012-06-25T15:28:37Z 2012-06-25T15:28:37Z 2005-05 http://documents.worldbank.org/curated/en/2005/05/5795848/migration-trade-foreign-investment-mexico http://hdl.handle.net/10986/8930 English Policy Research Working Paper; No. 3601 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research 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 |
| topic |
APPREHENSION ARBITRAGE ASYMMETRIC INFORMATION BALANCE OF PAYMENTS CENTRAL BANK COST OF LIVING CPI DEMOGRAPHICS DEVELOPED COUNTRIES DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC INTEGRATION ECONOMIC RESEARCH ELASTICITIES ELASTICITY EMIGRATION EMPIRICAL EVIDENCE EQUILIBRIUM EXCESS SUPPLY EXPORTS EXTERNALITIES FAMILIES FREE TRADE HOSPITALS HOUSING IMMIGRATION IMPORTS INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE LABOR FORCE LABOR MARKETS LATIN AMERICAN LDCS LIQUIDITY LIQUIDITY/WEALTH MIGRANTS MIGRATION MORTALITY MUNICIPALITIES NURSES OIL OPPORTUNITY COSTS PER CAPITA INCOME POLITICAL ECONOMY PRICE INDEXES PROJECT REPORT PUBLIC GOODS QUALITY OF LIFE RETIREMENT SAVINGS SECONDARY SCHOOLS SUBSTITUTION EFFECT TRADE FLOWS TRADE LIBERALIZATION TRADE/FDI TRADE/INVESTMENT TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATES UTILITY FUNCTION UTILITY THEORY VALUE ADDED WAGE DIFFERENTIALS WAGES WEALTH WEALTH/LIQUIDITY WORKERS |
| spellingShingle |
APPREHENSION ARBITRAGE ASYMMETRIC INFORMATION BALANCE OF PAYMENTS CENTRAL BANK COST OF LIVING CPI DEMOGRAPHICS DEVELOPED COUNTRIES DEVELOPMENT ECONOMICS ECONOMETRICS ECONOMIC DEVELOPMENT ECONOMIC INTEGRATION ECONOMIC RESEARCH ELASTICITIES ELASTICITY EMIGRATION EMPIRICAL EVIDENCE EQUILIBRIUM EXCESS SUPPLY EXPORTS EXTERNALITIES FAMILIES FREE TRADE HOSPITALS HOUSING IMMIGRATION IMPORTS INCOME INCREASING RETURNS INCREASING RETURNS TO SCALE LABOR FORCE LABOR MARKETS LATIN AMERICAN LDCS LIQUIDITY LIQUIDITY/WEALTH MIGRANTS MIGRATION MORTALITY MUNICIPALITIES NURSES OIL OPPORTUNITY COSTS PER CAPITA INCOME POLITICAL ECONOMY PRICE INDEXES PROJECT REPORT PUBLIC GOODS QUALITY OF LIFE RETIREMENT SAVINGS SECONDARY SCHOOLS SUBSTITUTION EFFECT TRADE FLOWS TRADE LIBERALIZATION TRADE/FDI TRADE/INVESTMENT TRANSPORT UNEMPLOYMENT UNEMPLOYMENT RATES UTILITY FUNCTION UTILITY THEORY VALUE ADDED WAGE DIFFERENTIALS WAGES WEALTH WEALTH/LIQUIDITY WORKERS Aroca Gonzalez, Patricio Maloney, William F. Migration, Trade, and Foreign Direct Investment in Mexico |
| geographic_facet |
Latin America & Caribbean Mexico |
| relation |
Policy Research Working Paper; No. 3601 |
| description |
Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it would increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States. Since poor data on illegal flows to the United States make direct measurement difficult, Aroca and Maloney instead evaluate the mechanism behind these predictions using data on migration within Mexico where the census data permit careful analysis. They offer the first specifications 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 the authors control for possible credit constraint effects. Greater exposure to FDI and trade deters out-migration with the effects working partly through the labor market. Finally, the authors generate some tentative inferences about the impact on increased FDI on Mexico-U.S. migration. On average, a doubling of FDI inflows leads to a 1.5-2 percent fall in migration. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Aroca Gonzalez, Patricio Maloney, William F. |
| author_facet |
Aroca Gonzalez, Patricio Maloney, William F. |
| author_sort |
Aroca Gonzalez, 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 |
World Bank, Washington, DC |
| publishDate |
2012 |
| url |
http://documents.worldbank.org/curated/en/2005/05/5795848/migration-trade-foreign-investment-mexico http://hdl.handle.net/10986/8930 |
| _version_ |
1764407293743464448 |