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Abstract This paper provides an empirical analysis of the relationship between preferential trade agreements (PTAs) and bilateral migration flows. Building on the empirical literature on the determinants of migration flows, I estimate a modified gravity model to assess the role of PTAs and their content on bilateral migration flows. Using a sample of 29 OECD destination countries over the period 1998–2008, I show a strong positive effect of PTAs on bilateral migration flows. I find that the content of PTAs also matters: when visa‐and‐asylum and labour market related provisions are included in PTAs, this further stimulates bilateral migration flows. Different estimation strategies, including instrumental variables, are employed to address the potential endogeneity bias problems related to PTAs and their content.
Gianluca Orefice (2015) studied this question.