Work

Temporary migration, indeterminacy and growth

Year: 2025

Type: article

Abstract: This paper constructs a one-sector small open economy model of growth to study the effects of temporary migration on the macroeconomic stability and growth of hosting countries. The paper focuses on a general production technology where both native and immigrant workers are treated as different labor inputs and finds that diminishing marginal returns to capital can be responsible of the emergence of indeterminacy of the equilibrium. However, when the social benefit of production are allowed to differ from the private benefit, the paper shows that the model exhibits a unique saddle-path equilibrium, but no endogenous growth.

Source: Economic Modelling

DOI: 10.1016/j.econmod.2025.107112

Author: Carmelo Pierpaolo Parello

Institution: Sapienza University of Rome

Language: English

Topic: Economic Growth and Productivity

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,660