Labour Migration and Shadow Prices

Henry J. Bruton
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Henry J. Bruton: Ford Foundationfor MiddleEast and North Africa

The Pakistan Development Review, 1980, vol. 19, issue 1, 65-77

Abstract: The effect of migration and home remittances .on the shadow prices of labour and foreign exchange is analysed here, taking into consideration changes in their social marginal productivities.It is argued tha r appreciation of currency, due to large capital inflows and not to increased productivity, results in a misallocation of resources, and, therefore, there is an urgent need for a proper analysis to determine the optimal level of emigrants.

Date: 1980
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