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Are International Capital Movement and International Labor Migration Substitutes under National Externality?

In: Labor Mobility and the World Economy

Author

Listed:
  • Kar-yiu Wong

    (University of Washington, Seattle)

Abstract
This paper examines the relationship between international capital movement (ICM) and international labor movement (ILM). Considering two economies that have identical technologies and factor endowment ratios but different sizes, this paper investigates whether ICM and ILM between the countries, when free trade in goods is allowed, are substitutes both in the price sense and in the quantity sense. Cases in which they are substitutes and those in which they are complements are described.

Suggested Citation

  • Kar-yiu Wong, 2006. "Are International Capital Movement and International Labor Migration Substitutes under National Externality?," Springer Books, in: Rolf J. Langhammer & Federico Foders (ed.), Labor Mobility and the World Economy, pages 111-139, Springer.
    • Handle: RePEc:spr:sprchp:978-3-540-31045-7_8
    DOI: 10.1007/978-3-540-31045-7_8
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    Cited by:

    1. TOMOHARA Akinori, 2015. "Effectively Opening Labor and Capital Markets: The interplay among foreign direct investment, trade, and immigration," Discussion papers 15079, Research Institute of Economy, Trade and Industry (RIETI).
    2. Jayet, H. & Marchal, L., 2016. "Migration and FDI: Reconciling the standard trade theory with empirical evidence," Economic Modelling, Elsevier, vol. 59(C), pages 46-66.

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