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Trade and Migration: A Production-Theory Approach

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  • Kohli, Ulrich

Abstract

This paper integrates the production-theory approach to import determination and the production-theory approach to immigration. The aggregate technology is described by a four-input translog cost function, from which the demand for imports and the demand for foreign labour services can be jointly derived. Empirical estimates are reported for Switzerland. Special care is taken to describe the substitution and complementarity relationships between the four inputs under alternative hypotheses. The issue of flexibility with respect to time is also examined.

Suggested Citation

  • Kohli, Ulrich, 1997. "Trade and Migration: A Production-Theory Approach," CEPR Discussion Papers 1684, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1684
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    More about this item

    Keywords

    Aggregate Production; Guestworkers; Imports; Smoothing; Substitution and Complementarity;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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