John Douglas Wilson a, Ilkay Yilmaz b
Author information
a Department of Economics, Michigan State University, East Lansing, MI 48824, USA
b Department of Economics, Mersin University, Ciftlikkoy, Yenisehir 33342, Mersin, Turkey
E-mail: wilsonjd@msu.edu (John Douglas Wilson), ilkayyilmaz@mersin.edu.tr (Ilkay Yilmaz)
This paper uses a probabilistic voting model to investigate voting for a free-trade agreement between a labor-abundant country and a capital-abundant country. Migration from the labor-abundant country to the capital-abundant country increases the probability of a free-trade agreement, with lower migration costs leading to more migration and a higher free-trade probability. On the other hand, if a lower probability of free trade is caused by an increased voter bias against free-trade candidates, then there is less migration. A dynamic extension of the model is also investigated.
free trade, migration, Heckscher-Ohlin, labor-abundant, capital- abundant
John Douglas Wilson, Ilkay Yilmaz. Free-Trade Agreements in a Model of Trade, Migration and Politics. Front. Econ. China, 2018, 13(1): 15‒31 https://doi.org/10.3868/s060-007-018-0003-7