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Dynamics, Welfare and Migration in Open Economies

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Author Info
Espinosa, Alexandra M.

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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.

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File URL: http://mpra.ub.uni-muenchen.de/1388/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 1388.

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Date of creation: 2006
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Handle: RePEc:pra:mprapa:1388

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Related research
Keywords: Migration free trade welfare transition dynamics.

Find related papers by JEL classification:
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
J6 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies

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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 173-78, May. [Downloadable!] (restricted)
  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. [Downloadable!] (restricted)
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This page was last updated on 2008-11-17.

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