Migration, Trade, and Foreign Direct Investment in Mexico
Part of the rationale for the North American Free Trade Agreement (NAFTA) was that it will increase trade and foreign direct investment (FDI) flows, creating jobs and reducing migration to the United States (U.S.). Since poor data on illegal migrat...
| Main Authors: | , |
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| Format: | Journal Article |
| Language: | English en_US |
| Published: |
Oxford University Press on behalf of the World Bank
2013
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2005/09/17752995/migration-trade-foreign-direct-investment-mexico http://hdl.handle.net/10986/16433 |
| Summary: | Part of the rationale for the North
American Free Trade Agreement (NAFTA) was that it will
increase trade and foreign direct investment (FDI) flows,
creating jobs and reducing migration to the United States
(U.S.). Since poor data on illegal migration to the United
States make direct measurement difficult, data on migration
within Mexico, where census data permit careful analysis,
are used instead to evaluate the mechanism behind
predictions on migration to the United States.
Specifications are provided for migration within Mexico,
incorporating measures of cost of living, amenities, and
networks. Contrary to much of the literature, labor market
variables enter very significantly and as predicted once
possible credit constraint effects are controlled for.
Greater exposure to FDI and trade deters outmigration, with
the effects working partly through the labor market.
Finally, some tentative inferences are presented about the
impact of increased FDI on Mexico- U.S. migration. On
average, a doubling of FDI inflows leads to a 1.5 to 2
percent drop in migration. |
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