Investment,population growth and GNP as determinants of US immigration

Northern countries typically attract migrants from poorer countries because of the formers' high wage rates and demand for labor. In particular, the US receives large numbers of legal migrants from almost every country and region of the world. This paper explores the determinants of permanent emigration to the US during 1989-93 using data drawn from the US Immigration and Naturalization Service (INS) Annual Tapes for the period. The analysis is restricted to only legal migration from 150 countries, and specifically investigates whether emigration to the US during 1989-93 can be accounted for by demographic and economic conditions in sending countries, or by levels of US investment in sending countries. No support is found for claims that rapid population growth and US investment fuel US immigration; emigration is comparatively far lower from countries experiencing rapid population growth and not significantly correlated with US investment, while the US typically invests the most in the more developed countries which send relatively few migrants to the US. Geographic proximity is the most important correlate of migration, followed by the population size of sending countries, which is negatively related to emigration. Some evidence was found that emigration will decrease as countries develop. Who a country decides to admit and how many people are admitted depend mainly upon public policy and very little upon the economic and demographic conditions of sending countries.