Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil

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...

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Main Authors:	Hering, Laura, Paillacar, Rodrigo
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	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
Online Access:	http://documents.worldbank.org/curated/en/2015/05/24472611/access-foreign-markets-shape-internal-migration-evidence-brazil http://hdl.handle.net/10986/21996

id	okr-10986-21996
recordtype	oai_dc
spelling	okr-10986-219962021-04-23T14:04:06Z Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil Hering, Laura Paillacar, Rodrigo 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 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. 2015-06-02T18:31:37Z 2015-06-02T18:31:37Z 2015-05 Working Paper http://documents.worldbank.org/curated/en/2015/05/24472611/access-foreign-markets-shape-internal-migration-evidence-brazil http://hdl.handle.net/10986/21996 English en_US Policy Research Working Paper;No. 7264 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Brazil
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English en_US
topic	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
spellingShingle	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 Hering, Laura Paillacar, Rodrigo Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil
geographic_facet	Latin America & Caribbean Brazil
relation	Policy Research Working Paper;No. 7264
description	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.
format	Working Paper
author	Hering, Laura Paillacar, Rodrigo
author_facet	Hering, Laura Paillacar, Rodrigo
author_sort	Hering, Laura
title	Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil
title_short	Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil
title_full	Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil
title_fullStr	Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil
title_full_unstemmed	Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil
title_sort	does access to foreign markets shape internal migration? : evidence from brazil
publisher	World Bank, Washington, DC
publishDate	2015
url	http://documents.worldbank.org/curated/en/2015/05/24472611/access-foreign-markets-shape-internal-migration-evidence-brazil http://hdl.handle.net/10986/21996
_version_	1764449864606810112

Does Access to Foreign Markets Shape Internal Migration? : Evidence from Brazil

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