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Temporary international migration and the nontraded sector of the labor-importing developing economy

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Abstract

In this paper the author examines the effects of external migration on the nontraded sector of the labor-importing developing economy. It is found that devaluation by the labor-exporting country will reduce the pressure on excess demand for labor and reduce the price of nontraded goods. Increases in the migrant workers’ consumption expenditures, the government expenditures on nontraded goods and the price of traded goods will increase the pressure on excess demand for labor and raise the price of nontraded goods. The effects of an increase in host country nominal wage, however, will remain ambiguous.

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Authors and Affiliations

  1. McNeese State University, 70609, Lake Charles, IA

    Matiur Rahman

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  1. Matiur Rahman
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Rahman, M. Temporary international migration and the nontraded sector of the labor-importing developing economy. J Econ Finan 16, 125–136 (1992). https://doi.org/10.1007/BF02919799

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  • DOI: https://doi.org/10.1007/BF02919799

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