International Import Competition and the Decision to Migrate: Evidence from Mexico

Research output: Working paper

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.

Details

Authors
Organisations
Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics

Keywords

  • China, WTO, Mexico, Trade, Migration, Import competition
Original languageEnglish
PublisherDepartment of Economics, Lund Universtiy
Number of pages35
Publication statusPublished - 2015
Publication categoryResearch

Publication series

NameWorking Paper / Department of Economics, School of Economics and Management, Lund University
No.25

Related research output

Kaveh Majlesi & Narciso, G., 2018 May, In : Journal of Development of Economics. 132, p. 75-87 13 p.

Research output: Contribution to journalArticle

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