Quality & Quantity

, Volume 49, Issue 2, pp 441–454 | Cite as

The simple analytics of optimal growth with migration

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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 

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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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