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Title: |
International Migration and Welfare in the Presence of Non-traded Goods:
An Interconnected Markets Approach |
| Author: |
Basu, Bharati |
| Author
Affiliation: |
Central MI U |
| Source: |
International Economic Journal, Winter 1992, v. 6, no. 4, pp. 33-45 |
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Publication Date: |
Winter 1992 |
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Abstract: |
This paper shows that if the terms of
trade are determined endogenously for an open economy with a non-traded
good sector, emigration results in favorable changes in the terms of
trade for the remaining residents of the country (non-migrants). These
changes and the gift of non-removable capital resources to non-migrants
may offset the welfare loss which results from the loss of trading
opportunity the non-migrants had with the migrants before migration
occurred. Thus, the non-migrants may gain in welfare as a result of
migration. |
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