Trade, FDI and migration created by Fabien Candau

By:

Candau, Fabien [author]

Material type: Text

TextSeries: International economic journal ; Volume 27, number 3Abingdon: Taylor and Francis, 2013Content type:

text

Media type:

unmediated

Carrier type:

volume

ISSN:

10168737

Subject(s):

Economic geography -- Migration costs -- Foreign investment, International migration, Theory

LOC classification:

HB1A1 INT

Online resources:

Click here to access online

Abstract: This article provides a theoretical synthesis of the New Economic Geography to analyse the links between trade, FDI and migrations. We find that liberalizing from high trade costs, a country can attract both capital and labour – the bifurcation pattern is a gradual peripheral exodus of workers associated with capital flight from the periphery – but after a threshold of trade costs, opening trade generates return migration toward the periphery while capital remains agglomerated in the core. The model is built on the assumption that factors are sector specific. By relaxing this assumption and by providing a second model where workers are mobile between industries (vertically linked) but also between countries we confirm this result.

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Holdings
Item type	Current library	Call number	Vol info	Copy number	Status	Notes	Date due	Barcode
Journal Article	Main Library - Special Collections	HB1A1 INT (Browse shelf(Opens below))	Vol. 27, no. 3 (pages 441-462)	SP18073	Not for loan	For In house Use

This article provides a theoretical synthesis of the New Economic Geography to analyse the links between trade, FDI and migrations. We find that liberalizing from high trade costs, a country can attract both capital and labour – the bifurcation pattern is a gradual peripheral exodus of workers associated with capital flight from the periphery – but after a threshold of trade costs, opening trade generates return migration toward the periphery while capital remains agglomerated in the core. The model is built on the assumption that factors are sector specific. By relaxing this assumption and by providing a second model where workers are mobile between industries (vertically linked) but also between countries we confirm this result.

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