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

Kar-yiu Wong
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Kar-yiu Wong: University of Washington, Seattle

A chapter in Labor Mobility and the World Economy, 2006, pp 111-139 from Springer

Abstract: 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.

Keywords: Wage Rate; Free Trade; Factor Price; Labor Movement; Rental Rate (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-540-31045-7_8

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DOI: 10.1007/978-3-540-31045-7_8

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