Working Papers, Department of Economics, Lund University
International Import Competition and the Decision to Migrate: Evidence from Mexico
() and Gaia Narciso
Abstract: We analyze the effects of the increase in China’s import
competition on Mexican domestic and international migration. We exploit the
variation in exposure to competition from China, following its accession to
the WTO in 2001, across Mexican municipalities and estimate the effect of
international competition on the individual decision to migrate.
Controlling for individual and municipality features, we find that
individuals living in municipalities more exposed to Chinese import
competition are more likely to migrate to other municipalities within
Mexico, while a negative effect is found on the decision to migrate to the
US. In particular, we find that Chinese import competition reduces
migrants’ negative self-selection: the rising international competition
lowers the likelihood of low-educated, low-income people to migrate to the
US, by making them more financially constrained.
Keywords: Import competition; Migration; Trade; Mexico; WTO; China; (follow links to similar papers)
JEL-Codes: F14; F16; F22; O15; R12; R23; (follow links to similar papers)
35 pages, August 17, 2015
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