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A Heckscher–Ohlin–Samuelson Model of Immigration and Capital Transfers

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  • Robert Kohn

Abstract

Given that the flow of immigrants from a developing country to an industrialized country increases with the gap in living standards, a welfare version of a Heckscher–Ohlin–Samuelson model is developed in which the equilibrium level of per capita utility in the developing country is some fixed fraction of that in the industrialized country. In searching for an optimal combination of immigration to the industrial country and capital transfer to the poorer country in order to raise that country's standard of living and reduce the number of emigrants, it is found that the international optimum is a corner solution with zero immigration and a positive capital transfer. Copyright Kluwer Academic Publishers 2001

Suggested Citation

  • Robert Kohn, 2001. "A Heckscher–Ohlin–Samuelson Model of Immigration and Capital Transfers," Open Economies Review, Springer, vol. 12(4), pages 379-387, October.
    • Handle: RePEc:kap:openec:v:12:y:2001:i:4:p:379-387
    DOI: 10.1023/A:1017930900126
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    References listed on IDEAS

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    1. Harry Clarke, 1995. "International labor-cum-capital migrations: Theory, welfare implications, and evidence," Open Economies Review, Springer, vol. 6(4), pages 323-340, October.
    2. Paul W. Miller, 1999. "Immigration Policy and Immigrant Quality: The Australian Points System," American Economic Review, American Economic Association, vol. 89(2), pages 192-197, May.
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    4. Kennedy John O. S., 1995. "Changes in Optimal Pollution Taxes as Population Increases," Journal of Environmental Economics and Management, Elsevier, vol. 28(1), pages 19-33, January.
    5. Paul E. Chambers & Robert E. Kohn, 2001. "Environmental Barriers to Trade: The Case of Endangered Sea Turtles," Review of International Economics, Wiley Blackwell, vol. 9(1), pages 123-132, February.
    6. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December.
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    Cited by:

    1. Kohn, Robert E., 2003. "Environmental standards as barriers to trade," Socio-Economic Planning Sciences, Elsevier, vol. 37(3), pages 203-214, September.

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