Trade, FDI and Migration

International audienceThis article provides a theoretical synthesis of the New Economic Geography to analyse the links between trade, FDI and migrations. We …nd that liberalizing from high trade costs, a country can attract both capital and labour-the bifurcation pattern is a gradual peripheral exodus of worker associated with capital ‡ight from the periphery-but after a threshold of trade costs, opening trade generates return migration toward the periphery while capital remains agglomerated in the core. The model is built on the assumption that factors are sector speci…c. By relaxing this assumption and by providing a second model where workers are mobile between industries (vertically linked) but also between countries we con…rm this result. JEL classi…cation: F12; R1