Doğuş Üniversitesi Dergisi
Yazarlar: İlkay YILMAZ
Konular:-
Anahtar Kelimeler:Economic Integration,Free Trade Agreements,Inequality,International Trade,Median - Voter
Özet: In this paper, by using a probabilistic static model, a possible relationship between the desirability of economic integration and (illegal) immigration is studied. Using the framework developed in Levy (1997), it is shown that migration from a labour abundant country to a capital abundant country might lead to economic integration between the two countries. By reducing the median voter's utility in the capital abundant host country, migration induces voters in this country to support a free trade agreement with the labour abundant migrant sending country that will stop further immigration.