TY - JOUR
T1 - Migration and dynamics
T2 - How a leakage of human capital lubricates the engine of economic growth
AU - Sorger, Gerhard
AU - Stark, Oded
AU - Wang, Yong
PY - 2013/10
Y1 - 2013/10
N2 - This paper studies the growth dynamics of a developing country under migration. Assuming that human capital formation is subject to a strong enough, positive intertemporal externality, the prospect of migration will increase growth in the home country in the long run. If the external effect is less strong, there exists at least a level effect on the stock of human capital in the home country. In either case, the home country experiences a welfare gain, provided that migration is sufficiently restrictive. These results, obtained in a dynamic general equilibrium setting, extend and strengthen the results of Stark and Wang (2002) obtained in the context of a static model.
AB - This paper studies the growth dynamics of a developing country under migration. Assuming that human capital formation is subject to a strong enough, positive intertemporal externality, the prospect of migration will increase growth in the home country in the long run. If the external effect is less strong, there exists at least a level effect on the stock of human capital in the home country. In either case, the home country experiences a welfare gain, provided that migration is sufficiently restrictive. These results, obtained in a dynamic general equilibrium setting, extend and strengthen the results of Stark and Wang (2002) obtained in the context of a static model.
KW - Intertemporal human capital externalities
KW - Long-run growth effect of the prospect of migration
KW - Overlapping-generations growth model
KW - Social welfare gains
UR - http://www.scopus.com/inward/record.url?scp=84884355612&partnerID=8YFLogxK
U2 - 10.1016/j.iref.2013.05.005
DO - 10.1016/j.iref.2013.05.005
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AN - SCOPUS:84884355612
SN - 1059-0560
VL - 28
SP - 26
EP - 37
JO - International Review of Economics and Finance
JF - International Review of Economics and Finance
ER -
