Quality & Quantity

, Volume 49, Issue 2, pp 441–454

The simple analytics of optimal growth with migration

Article

DOI: 10.1007/s11135-014-0001-3

Cite this article as:
Correani, L., Di Dio, F. & Patrì, S. Qual Quant (2015) 49: 441. doi:10.1007/s11135-014-0001-3

Abstract

This paper investigates the economic consequences of migration in the Ramsey-type dynamic optimizing context. In contrast to Hazari and Agro (J Econ Dyn Control 28:141–151, 2003) conclusions, we show that migration unambiguously reduces the per-capita domestic consumption growth, whereas necessarily raises the long-run per-capita consumption of domestic residents when production is “sufficiently” reactive to capital changes. Our findings are consistent with several empirical studies and simulation analyses, suggesting that changes in technological adjustment in response to migrants inflows may take some years to translate into productivity, generating some crowding out effects. The gains for natives are likely to materialize in the long run when the specialization of natives adjusts, firms invest in capital and adopt appropriate technologies.

Keywords

Domestic consumption Growth Migration 

JEL Classification

F2 O4 

Copyright information

© Springer Science+Business Media Dordrecht 2014

Authors and Affiliations

  1. 1.Department of Economics and ManagementTuscia UniversityViterboItaly
  2. 2.Sogei S.p.A.IT Economia - Modelli di Previsione ed Analisi StatisticheRomeItaly
  3. 3.Department of Methods and Models for Economics, Territory and FinanceSapienza UniversityRomeItaly

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