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Permanent Migrants And Cross-Border Workers -The Effects On The Host Country-


  • Kenji Kondoh


This paper investigates the effects caused by immigration on a host country. Using 2- factor and 2-good model where one of the good is non-traded, we show that if the non- traded good is labour (capital) intensive, then: (a)the inflow of foreign workers lowers (raises) the relative price of the non-traded good, lowers (lowers) wage rate and raises (raises) the rental price of capital, and (b)those effects caused by the inflow of permanent migrants are smaller (larger) than those caused by the inflow of cross-border workers. We also demonstrate that the inflow of foreign workers gives rise to an increase in the welfare of the native inhabitants in the host country, and if the non-traded good is capital intensive, the inflow of permanent migrants are more gainful to the native inhabitants than that of cross-border workers.

Suggested Citation

  • Kenji Kondoh, 1997. "Permanent Migrants And Cross-Border Workers -The Effects On The Host Country-," Departmental Working Papers 1997-01, McGill University, Department of Economics.
  • Handle: RePEc:mcl:mclwop:1997-01

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    Cited by:

    1. Bergh, Andreas & Nilsson, Therese, 2011. "Globalization and Absolute Poverty – A Panel Data Study," Working Paper Series 862, Research Institute of Industrial Economics.
    2. Halvor Mehlum & Gry Østenstad, 2016. "The political economy of migration policies in oil-rich Gulf countries," Oxford Economic Papers, Oxford University Press, vol. 68(4), pages 1062-1083.
    3. Panos Hatzipanayotou & Michael S. Michael, 2005. "Migration, Tied Foreign Aid and the Welfare State," CESifo Working Paper Series 1497, CESifo Group Munich.
    4. Kenji Kondoh, 2006. "Transboundary Pollution and International Migration," Review of International Economics, Wiley Blackwell, vol. 14(2), pages 248-260, May.

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