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Economic Growth and Immigration

In: The Economics of Immigration

Author

Listed:
  • Örn B. Bodvarsson

    (St. Cloud State University)

  • Hendrik Berg

    (University of Nebraska)

Abstract

The Solow model clearly shows that growth through factor accumulation cannot cause permanent improvements in living standards. Continuous improvements in per capita income can only occur if there is technological progress. The Schumpeterian model of innovation shows that immigration is likely to stimulate technological progress in destination countries, which means immigration contributes to the destination country’s rate of economic growth, all other things equal. There are four channels through which immigration may influence technological progress: Immigrants can (1) facilitate the transfer of technology, (2) contribute to innovation as entrepreneurs and workers in innovative activities, (3) change the size of economies, and (4) increase innovative competition by reducing the ability of vested interests to take protectionist measures to slow the process of creative destruction. The effects of emigration on the source country are more ambiguous, however.

Suggested Citation

  • Örn B. Bodvarsson & Hendrik Berg, 2009. "Economic Growth and Immigration," Springer Books, in: The Economics of Immigration, chapter 0, pages 221-258, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-77796-0_9
    DOI: 10.1007/978-3-540-77796-0_9
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    Cited by:

    1. Lorena Škuflić & Mira Krpan & Berislav Žmuk, 2018. "Migration and the economic crisis in the European Union member states: cluster analysis," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 6(2), pages 979-1000, December.

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