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date: 30 June 2022

Abstract and Keywords

In the canonical models of trade and factor movement, trade and migration are theorized to be substitutes, with similar effects on the wages people earn and the prices they pay for goods. This chapter explores whether this model explains the politics of trade and migration by examining three areas of scholarship: public opinion, policy, and flows. The public opinion literature has consistently found that opinion does not follow canonical models and instead has proposed two other explanations: the fiscal and cultural effects of immigrants. In contrast, trade and immigration policy historically have been substitutes, but due to their effects on the preferences of firms for immigrant labor and not only to their effects on the prices of goods and labor. Trade and migrant flows appear to be complements, as migrants help overcome the transaction costs inherent in international trade. Finally, the chapter discusses areas for future research.

Keywords: immigration, trade, public opinion, policy, immigrants, migration, transaction costs

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