A previous result by Kemnitz (2001) based on AK type endogenous growth model implied that the gains from immigration depends up on the percapita possession of capital stock by immigrant relative to that of the natives’. However, such a framework ignores the incentive labor creates for innovation and productivity. By using framework of horizontal innovation of Romer (1991), it is shown that immigration entails Pareto improvement even when immigrants posses no physical capital in contrast to the result in the literature.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
2167.
Find related papers by JEL classification: O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models F22 - International Economics - - International Factor Movements and International Business - - - International Migration O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives N30 - Economic History - - Labor and Consumers, Demography, Education, Income, and Wealth - - - General, International, or Comparative
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