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Migration dynamics, growth and convergence

  • Larramona, Gemma
  • Sanso, Marcos

The aim of the present paper is to analyze the impact of migration dynamics on economic growth and convergence in terms of both the capital/labor ratio and wages. From our results, the following main conclusions can be highlighted: 1) migration positively affects the sending country because of the improvement in the capital/labor ratio and the savings of returning workers; 2) the differences existing between countries do not necessarily disappear in the long term, so the convergence that arises is limited or conditional because it does not necessarily imply an equalization of per capita income, capital/labor ratio, and wages, or the disappearance of migration; and 3) the possibility of migratory flow reversion cannot be excluded in the transitory dynamics.

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Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 30 (2006)
Issue (Month): 11 (November)
Pages: 2261-2279

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Handle: RePEc:eee:dyncon:v:30:y:2006:i:11:p:2261-2279
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  1. Sala-i-Martin, Xavier X, 1996. "The Classical Approach to Convergence Analysis," Economic Journal, Royal Economic Society, vol. 106(437), pages 1019-36, July.
  2. Dustmann, Christian & Kirchkamp, Oliver, 2000. "The Optimal Migration Duration and Activity Choice after Re-migration," Sonderforschungsbereich 504 Publications 00-39, Sonderforschungsbereich 504, Universität Mannheim;Sonderforschungsbereich 504, University of Mannheim.
  3. Faini, Riccardo, 1996. "Increasing returns, migrations and convergence," Journal of Development Economics, Elsevier, vol. 49(1), pages 121-136, April.
  4. Kemnitz, Alexander, 2001. "Endogenous growth and the gains from immigration," Economics Letters, Elsevier, vol. 72(2), pages 215-218, August.
  5. James E. Rauch, 1991. "Economic Development, Urban Underemployment, and Income Inequality," NBER Working Papers 3758, National Bureau of Economic Research, Inc.
  6. Bertola, Giuseppe, 1992. "Models of Economic Integration and Localized Growth," CEPR Discussion Papers 651, C.E.P.R. Discussion Papers.
  7. Reichlin, Pietro & Rustichini, Aldo, 1998. "Diverging patterns with endogenous labor migration," Journal of Economic Dynamics and Control, Elsevier, vol. 22(5), pages 703-728, May.
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