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Scale Economies in Factor Supplies: International Trade, and Migration

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  • Jota Ishikawa
Abstract
This paper incorporates externalities generated by human capital into the Heckscher-Ohlin-Samuelson framework to examine the patterns of international trade and migration. Individuals endowed with different levels of human capital choose to become either unskilled or skilled workers. National scale economies with respect to human capital play an important role in endogenously determining these factor supplies and yield a number of interesting patterns of trade and migration. Migration could reinforce comparative advantage. Both skilled and unskilled workers could migrate in the same direction.

Suggested Citation

  • Jota Ishikawa, 1996. "Scale Economies in Factor Supplies: International Trade, and Migration," Canadian Journal of Economics, Canadian Economics Association, vol. 29(3), pages 573-594, August.
    • Handle: RePEc:cje:issued:v:29:y:1996:i:3:p:573-94
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    Cited by:

    1. Spiros Bougheas & Richard Kneller & Raymond Riezman, 2011. "Optimal Education Policies And Comparative Advantage," Pacific Economic Review, Wiley Blackwell, vol. 16(5), pages 538-552, December.
    2. Unel Bulent, 2015. "Human Capital Formation and International Trade," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 15(3), pages 1067-1092, July.
    3. Spiros Bougheas & Douglas R. Nelson, 2012. "Skilled Worker Migration and Trade: Inequality and Welfare," The World Economy, Wiley Blackwell, vol. 35(2), pages 197-215, February.
    4. Spiros Bougheas & Raymond Riezman, 2013. "Trade and the distribution of human capital," World Scientific Book Chapters, in: Raymond Riezman (ed.), International Trade Agreements and Political Economy, chapter 20, pages 395-407, World Scientific Publishing Co. Pte. Ltd..
    5. Philip Bodman, 1998. "A Contribution on the Empirics of Trade, Migration and Economic Growth for Australia and Canada," International Economic Journal, Taylor & Francis Journals, vol. 12(3), pages 41-62.

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