1. Migration, Trade, and Foreign Direct Investment in Mexico
- Author
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William F. Maloney and Patricio Aroca
- Subjects
TRADE LIBERALIZATION ,MIGRANT ,Immigration ,VALUE ADDED ,EMPLOYMENT GROWTH ,LABOR MIGRATION ,EXTERNALITIES ,Economics ,WAGE DIFFERENTIALS ,Consumer price index ,SPILLOVER ,Free trade ,media_common ,MIGRANTS ,UNEMPLOYMENT ,REAL WAGE ,MUNICIPALITIES ,CONSUMER PRICE INDEX ,ILLEGAL IMMIGRATION ,PER CAPITA INCOME ,SUBSTITUTION EFFECTS ,BULLETIN ,SECONDARY SCHOOLS ,SKILLED WORKERS ,LABOR SUPPLY ,media_common.quotation_subject ,FOREIGN DIRECT INVESTMENT ,WAGE LEVEL ,UNDOCUMENTED IMMIGRATION ,DEVELOPMENT ECONOMICS ,WORKER ,Development ,WAGE GROWTH ,UNEMPLOYED ,UNDOCUMENTED IMMIGRANTS ,WAGES ,PURCHASING POWER ,RETIREMENT ,EQUILIBRIUM WAGES ,PREVIOUS STUDIES ,YOUNG MEN ,LABOR MARKET ,WAGE EFFECT ,JOB SEARCH ,Internal migration ,EXCESS SUPPLY ,MORTALITY ,ELASTICITY ,MIGRATION DATA ,GDP PER CAPITA ,LIQUIDITY ,International economics ,INCREASING RETURNS TO SCALE ,ASYMMETRIC INFORMATION ,EDUCATIONAL ATTAINMENT ,EARNING ,CULTURAL CHANGE ,SOCIAL SECURITY ,HOSPITAL BEDS ,Economic integration ,CENTRAL BANK ,WEALTH ,RENTS ,URBAN EMPLOYMENT ,FREE TRADE ,LABOR STATISTICS ,FAMILY RESPONSIBILITIES ,ECONOMIC INTEGRATION ,GDP ,LABOUR ,UTILITY FUNCTION ,LABOUR FORCE ,SPOUSE ,EXPECTED WAGES ,POLITICAL ECONOMY ,IMMIGRATION REFORM ,INTERNAL MIGRATION ,EXPORTS ,ARBITRAGE ,PURCHASING POWER PARITY ,ECONOMETRICS ,UNEMPLOYMENT RATE ,FUTURE GROWTH ,INTERNATIONAL TRADE ,CREATING JOBS ,FISCAL POLICY ,Balance of payments ,OPPORTUNITY COSTS ,SUBSTITUTION EFFECT ,INTERNATIONAL MIGRATION REVIEW ,COST OF LIVING ,RESPECT ,CENSUS OF POPULATION ,LOCAL LABOR MARKET ,TRADE FLOWS ,Economics and Econometrics ,LDCS ,MIGRATION ,NOMINAL WAGES ,URBAN EMPLOYMENT SURVEY ,HUMAN RESOURCES ,HOUSEHOLD INCOME ,EMPLOYMENT LEVELS ,Foreign direct investment ,INNOVATIONS ,WAGE RATE ,POLICY RESEARCH ,DEVELOPING COUNTRIES ,QUALITY OF LIFE ,UNEMPLOYMENT RATES ,INTERNATIONAL MIGRATION ,UNSKILLED WORKERS ,Accounting ,HEALTH INFRASTRUCTURE ,LABOR MARKET IMPACT ,LABOR MARKETS ,MIGRATION FLOWS ,ECONOMIC ANALYSIS ,HOUSING ,LABOR MARKET VARIABLES ,POLICY ANALYSIS ,IMPERFECT COMPETITION ,INCREASING RETURNS ,UTILITY THEORY ,LABOR FORCE ,TRANSPORT ,TRANSPORTATION ,Net migration rate ,SAVINGS ,IMMIGRATION ,URBAN AREAS ,ECONOMIC RESEARCH ,NURSES ,ECONOMICS OF IMMIGRATION ,HOSPITAL ,Finance ,STATE UNIVERSITY - Abstract
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.
- Published
- 2005
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