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Migration and Foreign Direct Investment in the Globalization Context: the Case of a Small Open Economy

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Author Info
Artjoms Ivlevs (CEDERS, Université de la Mediterranée Aix-Marseille II)
Abstract

The 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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Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number 209.

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Date of creation: 15 Jun 2006
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Handle: RePEc:csl:devewp:209

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Related research
Keywords: 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, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers

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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. Facchini, Giovanni & Willmann, Gerald, 2005. "The political economy of international factor mobility," Journal of International Economics, Elsevier, vol. 67(1), pages 201-219, September. [Downloadable!] (restricted)
  2. Faini, Riccardo, 2004. "Trade Liberalization in a Globalizing World," CEPR Discussion Papers 4665, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  3. Kevin H. O'Rourke & Richard Sinnott, 2004. "The Determinants of Individual Attitudes Towards Immigration," Trinity Economics Papers 20042, Trinity College Dublin, Department of Economics. [Downloadable!]
    Other versions:
  4. Ramón López & Maurice Schiff, 1998. "Migration and the Skill composition of the Labor Force: The Impact of Trade Liberalization in LDCs," Canadian Journal of Economics, Canadian Economics Association, vol. 31(2), pages 318-336, May.
  5. Mayer, Wolfgang, 1984. "Endogenous Tariff Formation," American Economic Review, American Economic Association, vol. 74(5), pages 970-85, December. [Downloadable!] (restricted)
  6. Baldwin, Richard & Venables, Anthony J, 1994. "International Migration, Capital Mobility and Transitional Dynamics," Economica, London School of Economics and Political Science, vol. 61(243), pages 285-300, August. [Downloadable!] (restricted)
  7. Ruffin, Roy & Jones, Ronald, 1977. "Protection and real wages: The neoclassical ambiguity," Journal of Economic Theory, Elsevier, vol. 14(2), pages 337-348, April. [Downloadable!] (restricted)
  8. de Melo, Jaime & Grether, Jean-Marie & Müller, Tobias, 2001. "The Political Economy of International Migration in a Ricardo-Viner Model," CEPR Discussion Papers 2714, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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