Head-content or Headcount? Temporary Labour Movements as a Source of Growth
This paper contributes a theoretical model to study the effects of short-term movements of skilled labour on a country's economic growth. As traditional migration models emphasise the long-term effects of migration on factor endowments, they typically omit the analysis of gross labour flows. Gross flows however capture the volume of interactions and knowledge exchanges between workers living in different countries, which in turn affect the stock of knowledge available to their places of residences, and hence their ability to innovate and grow. A simulation based on available US, British and Australian data on international business visits reveals that short-term skilled labour movements have a positive and not insignificant effect on growth.
|Date of creation:||2005|
|Date of revision:|
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- Dermot Leahy & J. Peter Neary, 2004.
"Absorptive capacity, R&D spillovers, and public policy,"
200418, School of Economics, University College Dublin.
- Leahy, Dermot & Neary, J. Peter, 2007. "Absorptive capacity, R&D spillovers, and public policy," International Journal of Industrial Organization, Elsevier, vol. 25(5), pages 1089-1108, October.
- Leahy, Dermot & Neary, J Peter, 2004. "Absorptive Capacity, R&D Spillovers and Public Policy," CEPR Discussion Papers 4171, C.E.P.R. Discussion Papers.
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