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Head-content or Headcount? Temporary Labour Movements as a Source of Growth

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  • Massimiliano Tani

Abstract

This paper contributes a theoretical model to study the effects of short-term movements of skilled labour on a country's economic growth. As traditional migration models emphasise the long-term effects of migration on factor endowments, they typically omit the analysis of gross labour flows. Gross flows however capture the volume of interactions and knowledge exchanges between workers living in different countries, which in turn affect the stock of knowledge available to their places of residences, and hence their ability to innovate and grow. A simulation based on available US, British and Australian data on international business visits reveals that short-term skilled labour movements have a positive and not insignificant effect on growth.

Suggested Citation

  • Massimiliano Tani, 2005. "Head-content or Headcount? Temporary Labour Movements as a Source of Growth," Economics Working Papers ECO2005/17, European University Institute.
    • Handle: RePEc:eui:euiwps:eco2005/17
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    References listed on IDEAS

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    1. Leahy, Dermot & Neary, J. Peter, 2007. "Absorptive capacity, R&D spillovers, and public policy," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1089-1108, October.
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    Cited by:

    1. Bernard Hoekman & Çağlar Özden, 2010. "The Euro–Mediterranean Partnership: Trade in Services as an Alternative to Migration?," Journal of Common Market Studies, Wiley Blackwell, vol. 48(4), pages 835-857, September.
    2. Bernard Hoekman & Çağlar Özden, 2010. "The Euro–Mediterranean Partnership: Trade in Services as an Alternative to Migration?," Journal of Common Market Studies, Wiley Blackwell, vol. 48(4), pages 835-857, September.

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    More about this item

    Keywords

    international migration; temporary labour movements; skilled labour; economic growth;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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