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Barriers to immigration and the dynamics of emigration

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  • Djajić, Slobodan

Abstract

In a dynamic model of emigration and return migration I examine the role of migration costs in the process of capital accumulation of the source country. Every migration attempt reduces the amount of savings available for capital accumulation. It contributes, however, to an increase in the per-capita capital stock of the source country if the migrants leave some of their capital behind or decide to return and repatriate accumulated savings. The interaction among these flows governs the evolution of the economy’s capital stock and factor rewards, which in turn affects the decisions to emigrate and return migrate. Both the quantitative and qualitative effects of host-country policies and other disturbances on the key macroeconomic variables of the source country are found to depend on the level of migration costs.

Suggested Citation

  • Djajić, Slobodan, 2013. "Barriers to immigration and the dynamics of emigration," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 41-52.
  • Handle: RePEc:eee:jmacro:v:37:y:2013:i:c:p:41-52
    DOI: 10.1016/j.jmacro.2013.06.001
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    References listed on IDEAS

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    Cited by:

    1. Djajić, Slobodan & Vinogradova, Alexandra, 2015. "Overshooting the Savings Target: Temporary Migration, Investment in Housing and Development," World Development, Elsevier, vol. 65(C), pages 110-121.

    More about this item

    Keywords

    Emigration; Migration costs; Remittances; Capital accumulation;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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