Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/230524 
Year of Publication: 
2021
Series/Report no.: 
ILE Working Paper Series No. 46
Publisher: 
University of Hamburg, Institute of Law and Economics (ILE), Hamburg
Abstract: 
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.
Subjects: 
Aid
Gravity
Migration
JEL: 
F22
F35
O15
Document Type: 
Working Paper

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