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The Economic Impact of Medical Migration: A Receiving Country's Perspective

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  • Martine Rutten

Abstract

This paper seeks to determine the macroeconomic impacts of migration of skilled medical personnel from a receiving country's perspective. The resource allocation issues are explored in theory, by developing an extension of the Rybczynski theorem in a low-dimension Heckscher-Ohlin framework, and empirically, by developing a static CGE model for the UK with an extended health sector component. Using simple diagrams, an expansion of the health sector by recruiting immigrant skilled workers in certain cases is shown to compare favorably to the long-term (short-term) alternative of using domestic (unskilled) workers. From a formal analysis, changes in nonhealth outputs are shown to depend on factor-bias and scale effects. The net effects generally are indeterminate. The main finding from the applied model is that importing foreign doctors and nurses into the UK yields higher overall welfare gains than a generic increase in the NHS budget. Welfare gains rise in case of wage protection. Copyright © 2009 The Author. Journal compilation © Blackwell Publishing Ltd 2009.

Suggested Citation

  • Martine Rutten, 2009. "The Economic Impact of Medical Migration: A Receiving Country's Perspective," Review of International Economics, Wiley Blackwell, vol. 17(1), pages 156-171, February.
  • Handle: RePEc:bla:reviec:v:17:y:2009:i:1:p:156-171
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    References listed on IDEAS

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    1. Martin, John P, 1976. "Variable Factor Supplies and the Heckscher-Ohlin-Samuelson Model," Economic Journal, Royal Economic Society, vol. 86(344), pages 820-831, December.
    2. Martine Rutten, 2009. "The Economic Impact of Medical Migration: An Overview of the Literature," The World Economy, Wiley Blackwell, vol. 32(2), pages 291-325, February.
    3. Martin, John P. & Neary, J. Peter, 1980. "Variable labour supply and the pure theory of international trade : An empirical note," Journal of International Economics, Elsevier, vol. 10(4), pages 549-559, November.
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    Cited by:

    1. Michel Grignon & Yaw Owusu & Arthur Sweetman, 2013. "The international migration of health professionals," Chapters,in: International Handbook on the Economics of Migration, chapter 4, pages 75-97 Edward Elgar Publishing.
    2. repec:ilo:ilowps:485561 is not listed on IDEAS
    3. Anghel, Remus Gabriel & Botezat, Alina & Cosciug, Anatolie & Manafi, Ioana & Roman, Monica, 2016. "International migration, return migration, and their effects. A comprehensive review on the Romanian case," MPRA Paper 75528, University Library of Munich, Germany, revised Dec 2016.
    4. Wickramasekara, Piyasiri., 2014. "Assessment of the impact of migration of health professionals on the labour market and health sector performance in destination countries," ILO Working Papers 994855613402676, International Labour Organization.
    5. Pavel Yakovlev & Tanner Steinkopf, 2014. "Can Economic Freedom Cure Medical Brain Drain?," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 29(Fall 2014), pages 97-117.
    6. Martine Rutten, 2009. "The Economic Impact of Medical Migration: An Overview of the Literature," The World Economy, Wiley Blackwell, vol. 32(2), pages 291-325, February.
    7. Beladi, Hamid & Chao, Chi-Chur & Ee, Mong Shan & Hollas, Daniel, 2015. "Medical tourism and health worker migration in developing countries," Economic Modelling, Elsevier, vol. 46(C), pages 391-396.

    More about this item

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • I1 - Health, Education, and Welfare - - Health

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