Exchange rates and immigration policy Public Deposited
  • What explains cross-national and temporal variations in migrant rights? This article
    argues that policymakers implement more exclusionary or inclusive policies toward
    migrants in response to exchange-rate fluctuations. Since exchange rates affect the
    real value of remittances, exchange-rate depreciation of the host state’s currency
    makes migration less valuable for existing and potential migrants, while exchangerate
    appreciation increases the degree of migrant pressure on the host state by
    doing the opposite. This well-documented relationship between exchange rate
    valuation and migration movements affects how host country governments craft
    immigration policy. Under exchange-rate depreciation, policymakers will implement
    more inclusive policies to deter the “exit” of migrants and maintain a stable supply of
    labor. Under exchange-rate appreciation, increased migration pressures heighten
    public anxiety over immigration in the host country, in turn causing policymakers to
    restrict further immigration by implementing more exclusionary policies. Consistent
    with the argument, the empirical results show that the purchasing-power-parity
    (PPP) currency values of migrants’ home countries are positively correlated with
    more pro-migrant policies in host countries.

Date Issued
  • 2021
Academic Affiliation
Journal Title
Journal Issue/Number
  • 21
Journal Volume
  • 9
Last Modified
  • 2021-05-27
Resource Type
Rights Statement


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