Migration and Foreign Direct Investment in the Globalization Context: the Case of a Small Open Economy
AbstractThe main objective of the paper is to establish the link between the exogenous migration shocks and endogenous foreign direct investment flows in a small open economy setting with international capital mobility, immobile labour and a non-traded good. I find that the immigration of the high-skilled individuals and FDI flows are always complements in the quantity sense. The immigration of the low-skilled individuals will cause an outflow (inflow) of capital, if domestic non-traded and imported goods are relatively weak (strong) substitutes in consumption. Besides, I explain the attitudes of native individuals towards high-skilled and low-skilled immigrants.
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Bibliographic InfoPaper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 209.
Date of creation: 15 Jun 2006
Date of revision:
international factor mobility; non-traded good; general equilibrium; imperfect import substitution (Armington assumption); direct democracy; EU enlargement;
Find related papers by JEL classification:
- F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
- F22 - International Economics - - International Factor Movements and International Business - - - International Migration
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-02 (All new papers)
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