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

Majlesi, Kaveh LU and Narciso, Gaia (2015) In Working Paper / Department of Economics, School of Economics and Management, Lund University
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... (More)
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. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
published
subject
keywords
China, WTO, Mexico, Trade, Migration, Import competition
in
Working Paper / Department of Economics, School of Economics and Management, Lund University
issue
25
pages
35 pages
publisher
Department of Economics, Lund Universtiy
language
English
LU publication?
yes
id
d16646b7-7a11-48de-8f92-910ffae11627 (old id 7764145)
alternative location
http://swopec.hhs.se/lunewp/abs/lunewp2015_025.htm
date added to LUP
2015-08-19 14:59:22
date last changed
2016-04-16 08:02:13
@misc{d16646b7-7a11-48de-8f92-910ffae11627,
  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.},
  author       = {Majlesi, Kaveh and Narciso, Gaia},
  keyword      = {China,WTO,Mexico,Trade,Migration,Import competition},
  language     = {eng},
  number       = {25},
  pages        = {35},
  publisher    = {ARRAY(0xa04c710)},
  series       = {Working Paper / Department of Economics, School of Economics and Management, Lund University},
  title        = {International Import Competition and the Decision to Migrate: Evidence from Mexico},
  year         = {2015},
}