Kirdar, Murat and Saracoglu, Sirin (2007): Regional convergence and the causal impact of migration on regional growth rates.
Download (183Kb) | Preview
The standard growth theory predicts that allowing for labor mobility across regions would increase the speed of convergence in per capita income levels and that migration has a negative causal impact on regional growth rates. Although the empirical literature has uncovered some evidence for the former implication, the latter has not been verified empirically. This paper provides empirical evidence for the negative causal impact of migration on provincial growth rates in a developing country with a high level of internal migration that is characterized by unskilled labor exiting rural areas for urban centers. We utilize instrumental variables estimation method with an instrument unique to the country examined and also control for provincial fixed effects.
|Item Type:||MPRA Paper|
|Original Title:||Regional convergence and the causal impact of migration on regional growth rates|
|Keywords:||Regional convergence; Regional growth; Internal migration; Fixed effects; IV estimation|
|Subjects:||R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R23 - Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
C - Mathematical and Quantitative Methods > C2 - Single Equation Models; Single Variables > C23 - Models with Panel Data; Longitudinal Data; Spatial Time Series
O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O40 - General
|Depositing User:||Murat Kirdar|
|Date Deposited:||06. Mar 2007|
|Last Modified:||12. Feb 2013 14:40|
Barro, R.J. and X. Sala-i-Martin, 1991, Convergence across States and Regions, Brookings Papers on Economic Activity 1, 107--182. Barro, R.J. and X. Sala-i-Martin, 2004, Economic Growth (2nd ed.). (The MIT Press, Cambridge, MA). Caselli, F., Esquivel G. and F. Lefort, 1996, Reopening the Convergence Debate: A New Look at Cross-Country Growth Empirics, Journal of Economic Growth 1, 363-389. Islam, N., 1995, Growth Empirics: A Panel Data Approach, Quarterly Journal of Economics 110, 1127-1170. Karaca, O., 2004, Türkiye'de bölgeler arası gelir farklılıkları: yakınsama var mı? (In Turkish), Turkish Economic Association Discussion Paper No.: 2004/7. Persson, J., 1994, Convergence in per capita income and migration across the Swedish counties: 1906-1990, Institute for International Economic Studies, Stockholm University, mimeo. Reichlin, P. and A. Rustichini, 1998, Diverging patterns with labor migration, Journal of Economic Dynamics and Control 22, 703-728.