Does Access to Foreign Markets Shape Internal Migration?

Hering, Laura; Paillacar, Rodrigo

Does Access to Foreign Markets Shape Internal Migration?

Autores

Hering, Laura

Paillacar, Rodrigo

Editor

World Bank, Washington, DC

Descripción

This paper investigates how internal migration is affected by Brazil’s increased integration into the world economy. It analyzes the impact of regional differences in access to foreign demand on sector-specific bilateral migration rates between the Brazilian states for the years 1995 to 2003. Using international trade data, a foreign market access measure is computed at the sectoral level, which is exogenous to domestic migration. A higher foreign market access is associated with a higher local labor demand and attracts workers via two potential channels: higher wages and new job opportunities. Results show that both channels play a significant role in internal migration. Further, we find a heterogeneous impact across industries, according to their comparative advantage on the world market. However, the observed impact is driven by the strong reaction of low-educated workers to changes in market access. This finding is consistent with the fact that Brazil is exporting mainly goods that are intensive in unskilled labor.

Palabras clave

EXPORT SUPPLY, UNEMPLOYMENT RATES, GEOGRAPHIC PROXIMITY, CHECKS, ACCOUNTING, WAGE GAP, PRICE LEVELS, LAGS, LOCAL INFRASTRUCTURE, NATIONAL ECONOMY, INTEREST, GRAVITY MODELS, PERFECT COMPETITION, EXCHANGE, WAGE GRADIENT, EXPORTS, DOMESTIC MARKET, DEVELOPING COUNTRIES, ELASTICITY, TRADE FLOWS, GRAVITY MODEL APPROACH, EXPORTERS, REVENUES, POSITIVE COEFFICIENT, MARKET SHARES, DISTRIBUTION, GRAVITY MODEL, VARIABLES, PRICE, MARKET ACCESS, FREE TRADE, INTERNATIONAL BANK, MICRO-DATA, RETAIL, FOREIGN MARKETS, DEVELOPMENT, CHOICE, LABOR MARKET, TRADE BALANCE, FOREIGN TRADE, GLOBAL ECONOMY, COMMERCE, COSTS, TRADE SHOCKS, DEVELOPMENT ECONOMICS, TRADE INTEGRATION, FOREIGN MARKET, DEEPER TRADE INTEGRATION, SPECIALIZATION, PRODUCTS, TRADING, ECONOMETRICS, GLOBALIZATION, INCREASING RETURNS, MARKETS, WTO, RETURN, ACCESS, TRADE MODELS, INTERNATIONAL ECONOMICS, TRADE POLICY, PRODUCT, UTILITY, TRADE AGREEMENT, SUBSTITUTES, GRAVITY EQUATION, ECONOMIC RESEARCH, EXPENDITURE, UNEMPLOYMENT, CONSUMPTION, HUMAN CAPITAL, GOOD, MARKET POTENTIAL, INFORMAL WORKERS, WAGES, INTERNATIONAL TRADE, ECONOMETRIC ANALYSIS, TRADE COSTS, UNEMPLOYMENT RATE, INTERNATIONAL INVESTMENT, VALUE, COMPETITIVENESS, DEMAND SHOCKS, RETURNS, LOCAL MARKET, PRODUCT DIFFERENTIATION, COMPARATIVE DISADVANTAGE, DEMAND, TRADE REFORM, IMPORT COMPETITION, LABOR MARKET INTEGRATION, PRICE LEVEL, TRADE RELATIONSHIPS, AGRICULTURE, PROPERTY, FIRM PERFORMANCE, SHARES, MARKET, BENCHMARK, TRADE LIBERALIZATION, ECONOMICS, EXPORTER, LEVY, REGRESSION ANALYSIS, MARKET STRUCTURES, DOMESTIC DEMAND, TRADE DATA, ECONOMIC DEVELOPMENT, AGRICULTURAL PRODUCTS, TRADE, GDP, GOODS, THEORY, ACCESS TO FOREIGN MARKETS, MARKET SHARE, SECURITY, INTERNATIONAL MARKET, BILATERAL TRADE, INVESTMENT, SHARE, COMPARATIVE ADVANTAGE, MARGINAL EFFECTS, TARIFF, COMPETITIVE ADVANTAGE, SUPPLY, WAGE DIFFERENTIALS, MARKET INTEGRATION, MONOPOLISTIC COMPETITION, CHECK, TRADE PROMOTION, TOTAL OUTPUT, ECONOMIC GEOGRAPHY, INDUSTRIAL SECTOR, LABOR MARKETS, PRICE INDEX, OUTCOMES, EXPORT SHARE, DEMAND FOR GOODS, INTERNATIONAL MARKETS, WORLD MARKET, UNSKILLED LABOR, PRICES, DEVELOPMENT POLICY