Gravity model estimates of the spatial determinants of trade, migration, and trade-and-migration policies

Freeman, Rebecca; Lewis, John

doi:10.1016/j.econlet.2021.109873

Gravity model estimates of the spatial determinants of trade, migration, and trade-and-migration policies

Using a gravity model, we explore the effects of distance and borders on trade, migration, and trade-and-migration policies and document three key differences between trade and migration patterns in otherwise equivalent specifications. Regional trade (freedom-of-movement) agreements boost trade (migration) less (more) the more distant the country pairs. Distance effects on trade (migration) decrease (are unchanged) over time. International border effects on trade (migration) decrease (are unchanged) over time. ? 2021

1 July 2021

Economics Letters 2042021

DOI: 10.1016/j.econlet.2021.109873

https://www.sciencedirect.com/science/article/abs/pii/S0165176521001506

This Journal article is published under the centre's Trade programme.