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A Heckscher–Ohlin–Samuelson Model of Immigration and Capital Transfers

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Author Info
Robert Kohn ()
Abstract

Given that the flow of immigrants from a developing country to an industrialized country increases with the gap in living standards, a welfare version of a Heckscher–Ohlin–Samuelson model is developed in which the equilibrium level of per capita utility in the developing country is some fixed fraction of that in the industrialized country. In searching for an optimal combination of immigration to the industrial country and capital transfer to the poorer country in order to raise that country's standard of living and reduce the number of emigrants, it is found that the international optimum is a corner solution with zero immigration and a positive capital transfer. Copyright Kluwer Academic Publishers 2001

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File URL: http://hdl.handle.net/10.1023/A:1017930900126
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Publisher Info
Article provided by Springer in its journal Open Economies Review.

Volume (Year): 12 (2001)
Issue (Month): 4 (October)
Pages: 379-387
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Handle: RePEc:kap:openec:v:12:y:2001:i:4:p:379-387

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Related research
Keywords: immigration; capital transfer; foreign aid; consumption per capita; income gap;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Harry Clarke, 1995. "International labor-cum-capital migrations: Theory, welfare implications, and evidence," Open Economies Review, Springer, vol. 6(4), pages 323-340, October. [Downloadable!] (restricted)
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  2. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December. [Downloadable!] (restricted)
  3. Chambers, Paul & Kohn, Robert E, 2001. "Environmental Barriers to Trade: The Case of Endangered Sea Turtles," Review of International Economics, Blackwell Publishing, vol. 9(1), pages 123-32, February. [Downloadable!] (restricted)
  4. Paul W. Miller, 1999. "Immigration Policy and Immigrant Quality: The Australian Points System," American Economic Review, American Economic Association, vol. 89(2), pages 192-197, May. [Downloadable!] (restricted)
  5. Kennedy John O. S., 1995. "Changes in Optimal Pollution Taxes as Population Increases," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 19-33, January. [Downloadable!] (restricted)
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