Abstract
The paper develops a North-South model which is driven by scale economies in the modern sector. The model predicts that skilled and unskilled labor migrate from South to North and capital migrates from North to South. Migration of skilled labor and capital exhibits complementarity with trade while migration of labor may exhibit complementarity or substitutability. If the terms of trade effects are ignored, small movements of all factors affect the welfare of the population in South negatively and of that in North positively. The effects of migration on the terms of trade are ambiguous in general.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
