Can trade, aid, foreign direct investments and remittances curb migration from Turkey?

Abstract

In this study we examine the macro-determinants of Turkish migration to Germany over the period 1969–2004 by means of cointegration analysis. We find that trade and factor flows indeed influence migration and play a role in managing Turkish migration in the short as well as in the long run. However, the income differential between Turkey and Germany is the most important factor in determining migration flows and the effects of trade and factor flows on migration in the short as well as in the long run are mixed. Therefore, we argue that migration could be better managed when the dynamic gains from trade and factor flows are considered.