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Permanent Migrants and Cross‐Border Workers: The Effects on the Host Country
Author(s) -
Kondoh Kenji
Publication year - 1999
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/0022-4146.00144
Subject(s) - economics , inflow , renting , immigration , capital (architecture) , wage , welfare , labour economics , wage rate , relative price , capital outflow , cross country , exchange rate , monetary economics , demographic economics , human capital , market economy , geography , capital formation , financial capital , archaeology , meteorology , political science , law
Using a two‐factor, two‐good model, where only one of the goods is nontraded, I investigate the effects of immigration on the relative price of the two goods, the wage rate, and the rental price. I 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 nontraded good is capital (labor) intensive, the inflow of permanent migrants is of more (less) benefit to the native inhabitants than the inflow of cross‐border workers.