How Foreign Aid Affects Migration: Quantifying Transmission Channels - HAL-SHS - Sciences de l'Homme et de la Société
Other Publications Documents de travail du Centre d'Économie de la Sorbonne Year : 2022

How Foreign Aid Affects Migration: Quantifying Transmission Channels

Abstract

This is the first global study that quantifies the transmission channels through which foreign aid impacts migration to donor countries. We estimate a gravity model derived from a RUM model, using OECD data between 2011 and 2019 and an instrumentation strategy. Our identification takes advantage of data on multilateral aid provided by multilateral agencies which is non-donor specific. We find evidence that aid donated by a country increases migration to that country through an information channel. If that channel were the only one at play, a 1% increase in bilateral aid would induce a 0.17% increase in migration. In addition, a 1% increase in multilateral aid reduces migration from the less poor origin countries by 0.05% via a development channel.

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halshs-03887455 , version 1 (06-12-2022)

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  • HAL Id : halshs-03887455 , version 1

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Léa Marchal, Claire Naiditch, Betül Simsek. How Foreign Aid Affects Migration: Quantifying Transmission Channels. 2022. ⟨halshs-03887455⟩
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