DP1560 | Population Growth, Trade Policy, and Migration Incentives

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Differences in the rate of population growth between developed and developing countries have potentially important implications for patterns of trade, migration, and the distribution of the gains from economic activity, both within and between nations. This paper focuses on migration-related effects. We offer a theoretical discussion of explicit theoretical linkages between population growth, trade policy and migration. This is illustrated with numerical examples emphasizing linkages between changes in the terms of trade and migration patterns. The numerical analysis highlights issues not immediately evident from marginal analysis, including variations in the impact of policy over different time horizons.