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11 Pages
Jones
Course: EC 428, Fall 2009School: Middlebury
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Word Count: 378
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Are Trade &amp; Development Substitutions for Migration? Theory &amp; Case Studies Theory vs. Reality Classical and neoclassical theory suggest that trade and migration are substitutes. <a href="/keyword/trade-liberalization/" >trade liberalization</a> should result in a decrease in migration. This has not proven to be true, especially in the short...
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Are Trade & Development Substitutions for Migration? Theory & Case Studies Theory vs. Reality Classical and neoclassical theory suggest that trade and migration are substitutes. <a href="/keyword/trade-liberalization/" >trade liberalization</a> should result in a decrease in migration. This has not proven to be true, especially in the short run. The Migration Hump In the short run, increased development = increased migration. Migration In the long run, increased development deters migration. Development Push Factors <a href="/keyword/trade-liberalization/" >trade liberalization</a> may yield... Displacemen t of farm workers Population surge in the cities Population growth More potential migrants Unemployment at home, better opportunities and wages abroad = migration Other Push & Pull Factors Many argue that migration is primarily driven by the pulldemand side. (Example: US & Mexico.) Networking and family reunification drive chain migration. Superficial regional integration is unlikely to deter migration; more complete integration (EU) will deter migration beyond zone's borders. Other Push & Pull Factors Development aid may also act as a push factor in that it improves living standards and education. If trade and migration are to be substitutes, there must be an emphasis on job creation and investment in human capital (that can be utilized at home). Case Studies Volger & Rotte: Factors influencing immigration to Germany. Farsakh: EuroMed Partnership's potential effect on North African labor flows. Jones: Maquiladoras' effect on reduction of Mexican emigration. Volger & Rotte: 1% rise in the wage differential yields 1.6% increase in migration. 1% rise in GDP yields 1.2% reduction in migration. 1% rise in urban population yields 2.7% increase in migration. Negative political situation spurs migration. Farsakh EUMediterranean Partnership = <a href="/keyword/trade-liberalization/" >trade liberalization</a> and assistance to North Africa. Some migration benefits the EU . North Africa: high unemployment, falling wages. Liberalization = rural exodus and damaged agriculture and industry in North Africa. Networks and demand growth will perpetuate migration despite partnership. Jones Maquiladora: foreignowned manufacturing plant producing for export under arrangements with Mexican government. When l...
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