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Dynamics, Welfare and Migration in Open Economies

Author

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  • Espinosa, Alexandra M.

Abstract

In this work we analyze the importance of dynamics in the determination of the distribution of gains from free trade and migration. Given a transition dynamic, free trade might worsen a country relatively to autarchy. Moreover, some individuals might lose welfare during the transition dynamics. In both case, individuals find incentives to migrating, given the lost in the welfare relatively to the autarchy; given the lost in welfare relatively to another country; or, given the intertemporal lost in welfare. Then, inequalities in the distribution of the benefits from free trade matters. Finally, we find out that population size and specialization in production matters in the determination of the distribution of gains from free trade and migration.

Suggested Citation

  • Espinosa, Alexandra M., 2006. "Dynamics, Welfare and Migration in Open Economies," MPRA Paper 1388, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:1388
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    References listed on IDEAS

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    1. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-178, May.
    2. Brecher, Richard A & Bhagwati, Jagdish N, 1981. "Foreign Ownership and the Theory of Trade and Welfare," Journal of Political Economy, University of Chicago Press, vol. 89(3), pages 497-511, June.
    3. Bhagwati, Jagdish N. & Brecher, Richard A., 1980. "National welfare in an open economy in the presence of foreign-owned factors of production," Journal of International Economics, Elsevier, vol. 10(1), pages 103-115, February.
    4. Brecher, Richard A, 1982. "Optimal Policy in the Presence of Licensed Technology from Abroad," Journal of Political Economy, University of Chicago Press, vol. 90(5), pages 1072-1078, October.
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    More about this item

    Keywords

    Migration; free trade; welfare; transition dynamics;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers

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