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The Substitutability of Emigrants and Non-migrants in the Construction Sector of Pakistan

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  • Zafar Mahmood

    (Pakistan Institute of Development Economics (PIDE), Islamabad.)

Abstract

To predict the impact of emigration on labour displacement and factor rewards, a translogarithmic production function has been used. The estimation determined that unskilled emigrants and skilled and unskilled non-migrants have a complementarity with capital. While skilled emigrants and capital are substitutes, they are complementary with unskilled non-migrants. Based on these results, the model predicts displacement of unskilled non-migrants in the short run. Long-run predictions include an increase in wages of all kinds of workers and the adoption of capital-intensive techniques.

Suggested Citation

  • Zafar Mahmood, 1990. "The Substitutability of Emigrants and Non-migrants in the Construction Sector of Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 29(2), pages 123-136.
    • Handle: RePEc:pid:journl:v:29:y:1990:i:2:p:123-136
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    File URL: http://www.pide.org.pk/pdf/PDR/1990/Volume2/123-136.pdf
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    References listed on IDEAS

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    1. Grant, James H & Hamermesh, Daniel S, 1981. "Labor Market Competition among Youths, White Women and Others," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 354-360, August.
    2. BARTEN, Anton P., 1969. "Maximum likelihood estimation of a complete system of demand equations," LIDAM Reprints CORE 34, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
    4. Griliches, Zvi, 1969. "Capital-Skill Complementarity," The Review of Economics and Statistics, MIT Press, vol. 51(4), pages 465-468, November.
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    6. Johnson, George E, 1980. "The Theory of Labour Market Intervention," Economica, London School of Economics and Political Science, vol. 47(187), pages 309-329, August.
    7. Grossman, Jean Baldwin, 1982. "The Substitutability of Natives and Immigrants in Production," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 596-603, November.
    8. Sato, Ryuzo & Koizumi, Tetsunori, 1973. "On the Elasticities of Substitution and Complementarity," Oxford Economic Papers, Oxford University Press, vol. 25(1), pages 44-56, March.
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    Cited by:

    1. Ashfaque H. Khan & Mohammad Rafiq, 1993. "Substitution among Labour, Capital, Imported Raw Materials, and Bank Credit in Pakistan's Manufacturing," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 32(4), pages 1259-1266.

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