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Illegal Migrants, Tourism And Welfare: A Trade Theoretic Approach

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  • Marc Chesney
  • Bharat R. Hazari

Abstract

Many countries receive illegal migrants but are reluctant to accept them due to possible negative externalities. We provide a rationale for not policing illegal migration by linking it to the tourism industry. By paying illegal migrants less than local workers, the relative price of the non-traded goods is shown to be lower than it would be in the absence of such workers. An expansion in tourist trade, under certain intensity conditions, necessarily raises resident welfare and employment. This tourist boom necessarily lowers the welfare of the illegal migrants. It is established that an increase in tourism increases the supply of illegal migrants. Copyright 2003 Blackwell Publishers Ltd (a Blackwell Publishing Company).

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Pacific Economic Review.

Volume (Year): 8 (2003)
Issue (Month): 3 (October)
Pages: 259-268

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Handle: RePEc:bla:pacecr:v:8:y:2003:i:3:p:259-268

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Cited by:
  1. Kazuhiro Testu, 2006. "Tourism Promotion and Regional Development in Low-income Developing Countries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(3), pages 417-424.
  2. Moy, Hon Man & Yip, Chong K., 2006. "The simple analytics of optimal growth with illegal migrants: A clarification," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2469-2475, December.

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