The New Economic Geography and labour emigration: Analysing Venezuela's hyperinflation episode.

The Venezuelan hyperinflation process has caused serious economic and social consequences. The wave of migrants and refugees fleeing the country is one of the most obvious and important faces of the problem, with significant regional impacts. This paper aims to develop a methodology, related to the New Economic Geography, to explain Venezuelan labour migration flow from changes in the price level. Results from the model's simulations show that in the short run (1‐year horizon), Venezuelan industrial and agricultural workers tend to emigrate to nearby countries. However, in the long run (10‐year horizon), the decision is based on real wage differential. [ABSTRACT FROM AUTHOR]