Migration

Minouche Shafik, 22 November 2016

The spread of financial shocks globally has caused some to argue that capital accounts should be more closed, thereby shrinking the opportunities available to global savers and borrowers alike. That would put further downward pressure on interest rates in surplus economies, and upward pressure on borrowing costs in economies where the greatest opportunities lie. This column argues that by acting in their local interest, domestic macroprudential policymakers can safeguard against the risk of financial instability spilling across borders, while continuing to allow capital to flow to where it is of most use.

Vincenzo Bove, Leandro Elia, 16 November 2016

There is much dispute over whether immigration is beneficial or detrimental to the host country, and any conclusions are often event-driven rather than evidence-based. This column explores evidence on how immigration affected economic development between 1960 and 2013 through its effect on the cultural and ethnic composition of the destination country. Cultural heterogeneity appears to have had a positive impact on economic development, and the positive effect of diversity seems to have been stronger in developing countries.

Craig McIntosh, Gordon Hanson, 15 November 2016

At first glance, the migration pressures on the EU and US appear similar, but recent history is not a reliable guide to future trends. This column uses demographic trends to predict that the US will experience a gradual decline in its newly arrived immigrant population, while the EU, ringed by nearby high-population-growth states, will see large increases in the stock of first-generation immigrants. As a result, US emphasis on strengthening borders and returning undocumented migrants may be misplaced.

Konrad Burchardi, Thomas Chaney, Tarek Hassan, 12 November 2016

The economic effects of the unprecedented levels of international migrations over the past few years are at the centre of political debates about immigration policy. This column evaluates the causal effect of migration on foreign direct investment using immigration patterns to the US going back to the 19th century. Foreign direct investment is found to follow the paths of historical migrants as much as it follows differences in productivity, tax rates, and education. The results suggest a mechanism of information flow facilitation, and that the effect of ancestry on foreign direct investment is very long-lasting.

Francesco Fasani, 31 October 2016

The migration debate is often harsh and polarised, oscillating from calls for more open borders to promises to build new fences, and contrasting the views of those who emphasise the advantages and benefits from migration flows with those who consider migrants to impose an unnecessary strain on hosting societies. This column introduces a new eBook that offers a brief summary of what economists have learnt about migration in several crucial areas of policymaking, and identifies most of the important questions that still remain to be answered.

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