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Immigration Versus Outsourcing: A Developing Country¡¯S View

  • SIMONTINI DAS

    ()

    (Rabindra Bharati University)

  • AJITAVA RAYCHAUDHURI

    (Jadavpur University)

  • SAIKAT SINHA ROY

    (Jadavpur University)

This paper provides a comparative study between temporary immigration policy and product outsourcing process, from the low-income developing country¡¯s point of view, which is supply side constrained by the availability of skilled labour. A two-country general equilibrium model establishes an inverse relationship between temporary immigration quota and product outsourcing. Though temporary immigration quota enhances world welfare and the developed country welfare, its impact on welfare level of the developing country is uncertain. In the empirical part, a panel data analysis shows that real consumption level of a set of developing countries increases with an increase in product outsourcing, given an inverse relationship between product outsourcing and temporary immigration policy.

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Article provided by Chung-Ang Unviersity, Department of Economics in its journal Journal Of Economic Development.

Volume (Year): 37 (2012)
Issue (Month): 2 (June)
Pages: 109-138

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Handle: RePEc:jed:journl:v:37:y:2012:i:2:p:109-138
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  1. Sébastien Jean & Miguel Jimenez, 2007. "The Unemployment Impact of Immigration in OECD Countries," OECD Economics Department Working Papers 563, OECD Publishing.
  2. repec:dgr:uvatin:20040134 is not listed on IDEAS
  3. Subhayu Bandyopadhyay & Howard J. Wall, 2005. "Immigration and Outsourcing: A General Equilibrium Analysis," Working Papers 05-08 Classification-, Department of Economics, West Virginia University.
  4. M. Daniele Paserman & Sarit Cohen-Goldner, 2010. "The dynamic impact of immigration on natives' labor market outcomes: Evidence from Israel," Boston University - Department of Economics - Working Papers Series WP2010-046, Boston University - Department of Economics.
  5. Dibyendu Maiti & Sugata Marjit, 2011. "Subcontracting, R&D And Labour Productivity: A Theoretical Explanation," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(3), pages 1-24, September.
  6. Bandyopadhyay, Subhayu & Marjit, Sugata & Yang, Lei, 2011. "An Evaluation of the Employment Effects of Barriers to Outsourcing," IZA Discussion Papers 5426, Institute for the Study of Labor (IZA).
  7. Jansen, Marion & Piermartini, Roberta, 2005. "The Impact of Mode 4 Liberalization on Bilateral Trade Flows," CEPR Discussion Papers 5382, C.E.P.R. Discussion Papers.
  8. Michael Engman, 2007. "Expanding International Supply Chains: The Role of Emerging Economies in Providing it and Business Process Services," OECD Trade Policy Papers 52, OECD Publishing.
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