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Immigration Versus Outsourcing: A Developing Country¡¯S View

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  • SIMONTINI DAS

    ()
    (Rabindra Bharati University)

  • AJITAVA RAYCHAUDHURI

    (Jadavpur University)

  • SAIKAT SINHA ROY

    (Jadavpur University)

Abstract

This paper provides a comparative study between temporary immigration policy and product outsourcing process, from the low-income developing country¡¯s point of view, which is supply side constrained by the availability of skilled labour. A two-country general equilibrium model establishes an inverse relationship between temporary immigration quota and product outsourcing. Though temporary immigration quota enhances world welfare and the developed country welfare, its impact on welfare level of the developing country is uncertain. In the empirical part, a panel data analysis shows that real consumption level of a set of developing countries increases with an increase in product outsourcing, given an inverse relationship between product outsourcing and temporary immigration policy.

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Bibliographic Info

Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 37 (2012)
Issue (Month): 2 (June)
Pages: 109-138

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Handle: RePEc:jed:journl:v:37:y:2012:i:2:p:109-138

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Related research

Keywords: Immigration; Outsourcing; Intermediate Input; Consumption; Panel Analysis;

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  1. M. Daniele Paserman & Sarit Cohen-Goldner, 2010. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," Boston University - Department of Economics - Working Papers Series WP2010-046, Boston University - Department of Economics.
  2. Subhayu Bandyopadhyay & Sugata Marjit & Lei Yang, 2010. "An evaluation of the employment effects of barriers to outsourcing," Working Papers 2010-030, Federal Reserve Bank of St. Louis.
  3. Simonetta Longhi & Peter Nijkamp & Jacques Poot, 2004. "A Meta-Analytic Assessment of the Effect of Immigration on Wages," Tinbergen Institute Discussion Papers 04-134/3, Tinbergen Institute.
  4. Subhayu Bandyopadhyay & Howard J. Wall, 2005. "Immigration and Outsourcing: A General Equilibrium Analysis," Working Papers 05-08 Classification-, Department of Economics, West Virginia University.
  5. Dibyendu Maiti & Sugata Marjit, 2011. "Subcontracting, R&D And Labour Productivity: A Theoretical Explanation," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 1-24, September.
  6. Roberta Piermartini & Marion Jansen, 2005. "The Impact of Mode 4 Liberalization on Bilateral Trade Flows," Working Papers id:290, eSocialSciences.
  7. Jean, Sébastien & Jiménez, Miguel, 2011. "The unemployment impact of immigration in OECD countries," European Journal of Political Economy, Elsevier, vol. 27(2), pages 241-256, June.
  8. Michael Engman, 2007. "Expanding International Supply Chains: The Role of Emerging Economies in Providing it and Business Process Services," OECD Trade Policy Papers 52, OECD Publishing.
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