International Migration and Remittances in a Twocountry Temporary Equilibrium Model

International Migration and Remittances in a Twocountry Temporary Equilibrium Model Open economy macroeconomic models generally overlook the effects ofinternational migration and remittances on income and welfare. Atwocountry temporary equilibrium model is presented which incorporatestrade theoretic elements of international migration and remittances. Inthe model, an expansionary incomes, or a trade, policy by the hostcountry induces migration, while expansionary demand policies in thesource country discourage migration. In all cases, however, when somedegree of international migration exists, potential income and welfaregains to both countries induced by such policies exceed the equivalentpolicy gains where international migration and remittances are absent. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Economic Studies Emerald Publishing

International Migration and Remittances in a Twocountry Temporary Equilibrium Model

Journal of Economic Studies, Volume 18 (2) – Feb 1, 1991

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Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0144-3585
DOI
10.1108/01443589110144483
Publisher site
See Article on Publisher Site

Abstract

Open economy macroeconomic models generally overlook the effects ofinternational migration and remittances on income and welfare. Atwocountry temporary equilibrium model is presented which incorporatestrade theoretic elements of international migration and remittances. Inthe model, an expansionary incomes, or a trade, policy by the hostcountry induces migration, while expansionary demand policies in thesource country discourage migration. In all cases, however, when somedegree of international migration exists, potential income and welfaregains to both countries induced by such policies exceed the equivalentpolicy gains where international migration and remittances are absent.

Journal

Journal of Economic StudiesEmerald Publishing

Published: Feb 1, 1991

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