POTENTIAL CHANNELS OF IMMIGRANT INFLUENCE ON THE ECONOMY OF THE RECEIVING COUNTRY

Abstract

ABSTRACT Immigrants may affect natives through a number of channels. Among these many channels of influence, the production theory and public sector channels have been most frequently studies in the context of contemporary U.S. immigration. Other channels that may be important are changed local demand for final goods and services (including that generated by immigrant wealth); indirect and induced demands for factors of production, demand for fixed capital (e.g. housing) and land, technological change, scale and agglomeration economies, unemployment, labor fore participation, inflation, balance of payments, regional and national net experts, internal migration, remittances, externalities and fertility patterns. This paper discusses certain problems with the use of the production theory and public sector channels and also describes the potential importance of other channels, as indicated for other countries and/or for the U.S. during other periods of time. While these alternative channels may sometimes reinforce the two they frequently run counter to them.