Managing Migration Flows Through Foreign Aid

Arbeitspapier

This paper investigates through which channels foreign aid impacts migration to donor countries. To disentangle the non-donor-specific channels (development and credit constraint channels) from the donor-specific channels (information and instrumentation channels), we use the fact that multilateral aid is not donor-specific contrary to bilateral aid. We estimate a gravity model derived from a RUM model of migration using an IV-2SLS strategy and the DEMIG-C2C and AidData datasets. We find that aid donated by a country increases migration to that donor through an information channel and especially for the poorest recipient countries. In addition, we find that aid weakly reduces migration to any country via a development channel.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ILE Working Paper Series ; No. 46

Classification and Topics

• Classification: Wirtschaft ; International Migration ; Foreign Aid ; Economic Development: Human Resources; Human Development; Income Distribution; Migration
• Subject: Aid ; Gravity ; Migration

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Marchal, Léa ; Naiditch, Claire ; Simsek, Betül
• Event: Veröffentlichung
• (who): University of Hamburg, Institute of Law and Economics (ILE)
• (where): Hamburg
• (when): 2021

Further information

• Handle: http://hdl.handle.net/10419/230524
• Last update: 10.03.2025, 11:45 AM CET