|**Table 2: Determinants of Migrati**<br>Basic|**on**<br>Reduced|F|DI|Maq|uila|Exp|orts|Im|ports|
|---|---|---|---|---|---|---|---|---|---|
||sample|||(reduced|sample)|||||
|1a|1b|2a|2b|3a|3b|4a|4b|5a|5b|
|Distance<br>-0.039|-0.0553|-0.037|-0.0421|-0.0581|-0.0564|-0.0359|-0.0399|-0.0345|-0.0389|
|(15.61)|(10.38)|(13.99)|(16.97)|(10.53)|(10.94)|(14.11)|(16.45)|(13.77)|(15.99)|
|Distance sq.<br>0.0005|0.0007|0.0005|0.0005|0.0008|0.0008|0.0005|0.0005|0.0004|0.0005|
|(8.92)|(6.12)|(9.04)|(9.81)|(6.85)|(6.63)|(8.49)|(9.24)|(8.30)|(9.16)|
|Networks<br>0.004|0.0045|0.0034|0.0041|0.0042|0.0042|0.0037|0.0035|0.0041|0.0039|
|(12.58)|(9.78)|(9.64)|(12.67)|(8.68)|(9.43)|(11.12)|(11.19)|(12.55)|(12.60)|
|Population i<br>-0.0014|-0.0175|0.0034|-0.0086|-0.0268|-0.0141|0.0055|0.0085|0.0087|0.0111|
|(0.33)|(2.08)|(0.71)|(1.92)|(3.26)|(1.72)|(1.24)|(1.91)|(1.96)|(2.41)|
|Population j<br>0.0456|0.0286|0.0473|0.0384|0.0224|0.035|0.0415|0.0492|0.0366|0.0436|
|(9.61)|(3.12)|(9.18)|(7.95)|(2.39)|(3.91)|(8.41)|(10.38)|(7.55)|(9.13)|
|Log. prices i<br>0.3079|0.0905|0.2764|0.3374|0.4605|-0.125|0.2079|0.1563|0.2356|0.1697|
|(3.45)|(0.55)|(3.21)|(3.84)|(3.67)|(0.73)|(2.65)|(1.74)|(3.05)|(1.88)|
|Log. prices j<br>0.2843|0.1632|0.7152|0.2582|0.9122|0.1718|0.7792|0.3036|0.6542|0.3045|
|(3.71)|(1.10)|(9.89)|(3.45)|(7.95)|(1.14)|(11.68)|(3.98)|(9.72)|(4.04)|
|Relative Amenities<br>0.003|-0.0277|0.0019|-0.0013|0.0038|-0.0096|-0.0005|-0.0029|0.0004|-0.0013|
|(1.47)|(0.93)|(0.83)|(0.62)|(0.13)|(0.33)|(0.24)|(1.38)|(0.17)|(0.62)|
|Amenities i<br>0.0225|-0.0155|0.0471|0.0211|-0.0005|-0.0214|0.0459|0.0368|0.0654|0.0533|
|(1.91)|(0.64)|(4.04)|(1.82)|(0.02)|(0.90)|(3.82)|(3.16)|(5.15)|(4.35)|
|**Labor market**||||||||||
|Relative unemp.<br>-0.1161|-0.1506||-0.1391||-0.1454||-0.1097||-0.1212|
|(4.20)|(2.17)||(5.12)||(2.16)||(4.10)||(4.51)|
|Unemployment i<br>-0.0335|-0.134||-0.0609||-0.136||-0.0322||-0.0205|
|(2.21)|(3.10)||(3.99)||(3.24)||(2.21)||(1.38)|
|Relative nominal wage<br>0.8025|1.0515||0.8902||0.8513||0.753||0.6188|
|(12.46)|(8.22)||(12.00)||(5.56)||(10.02)||(7.65)|
|Log. nominal wage i<br>0.6903|1.2762||1.044||1.5221||1.012||0.899|
|(6.72)|(6.05)||(8.98)||(6.08)||(8.29)||(7.02)|
|**Investment and trade**||||||||||
|Relative {FDI/Maquila/ Exports/||||||||||
|<br>Imports}||0.0291|-0.0091|0.0293|0.0535|0.0614|0.0195|0.0673|0.0309|
|||(6.40)|(1.81)|(2.51)|(4.00)|(10.27)|(2.88)|(11.83)|(4.40)|
|Log {FDI/Maquila/ Exports||||||||||
|/Imports}i||0.0085|-0.0407|0.0447|-0.0236|0.0136|-0.0458|0.0174|-0.033|
|||(1.36)|(5.78)|(2.51)|(1.17)|(1.50)|(4.31)|(1.96)|(3.02)|
|DF and Mexico State<br>-0.2147|0.0119|-0.266|-0.1219|-0.099|-0.0247|-0.2531|-0.2558|-0.2664|-0.2382|
|(5.26)|(0.16)|(6.02)|(2.85)|(1.29)|(0.33)|(6.05)|(6.39)|(6.54)|(6.03)|
|<br>Constant<br>-10.3586|<br>-12.6053|<br>-7.3816|<br>-12.6744|<br>-9.0691|<br>-13.2986|<br>-7.4026|<br>-11.9351|<br>-7.0175|<br>-11.315|
|(13.94)|(9.56)|(14.23)|(15.64)|(11.73)|(9.86)|(14.94)|(15.31)|(14.45)|(13.83)|
|Observations<br>992|306|992|992|306|306|992|992|992|992|
|R-squared<br>0.7<br>Estimates: Least squares weighted by group|0.84<br>(gprobit).|0.66<br>“i” and “j”|0.72<br>are origin|0.83<br>and destina|0.85<br>tion states|0.68<br>respectivel|0.72<br>y. 1a prese|0.69<br>nts the base|0.72<br>regression|

Estimates: Least squares weighted by group (gprobit). “i” and “j” are origin and destination states respectively. 1a presents the base regression for all states and 1b presents the results with a reduced sample of states with data on maquila value added. Columns 2a,3a, 4a and 5a present the results without labor market variables, but including FDI, maquila value added, exports, and imports respectively. The amenities, labor, and investment and trade variables are included as a relative measure (log Xj” – log Xi) and a free standing value at the origin, log Xi. Columns 2b,3b,3b, and 5b add the labor market variables. Imports and FDI statistics were provided by the Central Bank of Mexico. The _Maquilas_ Value Added is based on _Banco de Datos_ division of the INEGI statistics (http://dgcnesyp.inegi.gob.mx/bdine/bancos.htm). Exports was provided by the Ministry of Finance (Hacienda).

<mark>Absolute value of t-statistics in parentheses</mark> 28