Migrant network effect and economic development
We compare the development effect of information cost reduction with that of migration cost reduction in a two-sector, macro-dynamic framework that incorporates a migrant network effect. Numerical analyses show that although the reduction in information cost can stimulate inflows of FDI that benefit the traded sector, the loss of labor due to migration cost reduction hampers the expansion of the sector, leading to a long-run macroeconomic contraction for the developing country.
Lim, Sokchea and Khun, Channary, "Migrant network effect and economic development" (2023). 2023 Faculty Bibliography. 7.
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