T his paper summarizes recent international migration patterns, explains why people cross borders for economic reasons, and reviews the potential for trade, investment, and aid policies adopted by immigration countries to reduce what is termed unwanted immigration. The adjective "unwanted" emphasizes the fact that much of the economically motivated migration that West European and North American states seek to curb--e.g., foreigners who arrive as tourists and request asylum or unauthorized aliens who are granted so-callled temporary protected status (TPS) because they are family members of legal residents--is not illegal per se but also is not welcomed.
Immigration countries have three major economic instruments available to reduce unwanted migration: trade, investment, and aid. A fourth policy--political and military intervention--is discussed briefly to put the costs of the economic instruments in perspective.
Trade affects the location and cost of production; trade policies affect the competitiveness of an emigration country's products and employment in the export and import sectors of both sending and receiving countries. Foreign investment can pro