International migration, the movement of people across international boundaries, has enormous economic, social and cultural implications in both origin and destination countries. It is estimated that some one hundred and eighty million people (three per cent of the world's population) are living in countries in which they were not born. Among these are millions of highly-educated people who moved to developed countries from developing countries that already suffer from low levels of human capital and skilled workers. Moreover, the flow of formal remittances from migrants to their relatives in their countries of birth has exhibited a very rapid and accelerating rate of growth. Estimated to exceed one hundred billion dollars annually, remittances surpass foreign aid and account for the largest source of foreign capital for dozens of countries. This timely volume provides an in-depth examination of the relationship between - and the impacts on - migration, remittances and development. Using new household surveys and census data, the determinants of migration and the impact of migration and remittances on various measures of welfare are analyzed. Other issues discussed include the migration of skilled workers, the impact of international students and skilled migration in the United States, the determinants of internal and international migration from rural areas whilst providing a critical examination of the new 'brain drain' literature.

Two theories are combined to explain why free trade areas have proliferated more than customs unions have.

Adherents of the "natural trading partner" hypothesis argue that preferential trade agreements are more likely to improve welfare if participating countries already trade disproportionately with each other. Opponents argue the opposite. Neither side is right. The hypothesis holds up only if two countries are "natural trading partners" in the sense that one country tends to import what the other exports.

Abstract: Schiff considers the policy options of the West Bank and Gaza with respect to trade and the export of labor services. He concludes that: Nondiscriminatory trade policy is unambiguously superior to a free trade agreement with Israel; The West Bank and Gaza should pursue a nondiscriminatory trade policy with all its neighbors, but only on the condition that the trade policy be open, transparent, and enforced by a credible lock-in mechanism. Otherwise, a customs union with Israel may be preferable; The Palestinian Authority should establish a system of fee-based permits for Palestinians working in Israel; The Palestinian Authority should consider allowing Jordanians access to the West Bank and Gaza labor market. This paper"a product of Trade, Development Research Group"is part of a larger effort in the group to analyze trade and regional integration policies in the Middle East. The author may be contacted at mschiff@@worldbank.org.