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Economic development

Migration, trade, capital and development: substitutes, complements and policies (pdf 127kb)

This paper looks at migration and its interactions with other elements of globalisation as they impact on development. The movements of skilled and unskilled migrants are examined with reference to the costs and benefits of those movements on the countries of origin and destination.

Migration of the unskilled clearly benefits the origin country, mainly due to the flow of remittances but also if the departure of some raises the ability of others to migrate. This depends on whether trade is a complement or a substitute for migration. The impact of such flows on the destination country is more ambiguous, although most research indicates that wages and employment are not likely to be seriously affected.

 

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