East Asian Economic Review

Korea Institute for International Economic Policy (대외경제정책연구원)
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Revisiting a Gravity Model of Immigration: A Panel Data Analysis of Economic Determinants

  • Received : 2022.06.15
  • Accepted : 2022.07.13
  • Published : 2022.06.30
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Abstract

This study investigates the effect of economic factors on immigration using the gravity model of immigration. Cross-sectional regression and panel data analyses are conducted from 2000 to 2019 using the OECD International Migration Database, which consists of 36 destination countries and 201 countries of origin. The Poisson pseudo-maximum-likelihood method, which can effectively correct potential biased estimates caused by zeros in the immigration data, is used for estimation. The results indicate that the economic factors strengthened after the global financial crisis. Additionally, this effect varies depending on the type of immigration (the income level of origin country). The gravity model applied to immigration performs reasonably well, but it is necessary to consider the country-specific and time-varying characteristics.

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Acknowledgement

This work was supported by the Hongik University new faculty research support fund. I would like to thank three anonymous referees for their insightful comments.

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