Migration and Population Growth’s Impact on Natural Resources and Welfare: The Role of Manufacturing’s Returns to Scale

Maurice Schiff ()
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Maurice Schiff: World Bank

No 18361, IZA Discussion Papers from IZA Network @ LISER

Abstract: I examine the impact of population growth and endogenous migration on renewable natural resources (NR) and welfare in a general equilibrium model with two sectors – a commodity and a manufacturing sector, and with two inputs – labor and NR. Under population growth and no migration, a country’s NR and welfare are unchanged (increase) (decline and eventually collapse) over time for constant (increasing) (decreasing) returns to scale in the manufacturing sector, i.e., for ϕ=(>)( )1, and benefits both countries only if ϕ ) 1 in the home (host) country. Thus, ignoring how the level of the manufacturing sector’s returns to scale affects migration flows and their impact on NR and welfare is likely to lead to erroneous conclusions and policy implications.

Keywords: migration; population growth; Renewable Natural Resources (NR); impact on NR and welfare (search for similar items in EconPapers)
JEL-codes: F16 F18 Q27 Q56 (search for similar items in EconPapers)
Date: 2026-02
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