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Trade and Migration: A Production-Theory Approach

Author

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  • Kohli, Ulrich

Abstract

This paper integrates the production-theory approach to import determination and the production-theory approach to immigration. The aggregate technology is described by a four-input translog cost function, from which the demand for imports and the demand for foreign labour services can be jointly derived. Empirical estimates are reported for Switzerland. Special care is taken to describe the substitution and complementarity relationships between the four inputs under alternative hypotheses. The issue of flexibility with respect to time is also examined.

Suggested Citation

  • Kohli, Ulrich, 1997. "Trade and Migration: A Production-Theory Approach," CEPR Discussion Papers 1684, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:1684
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    Citations

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    Cited by:

    1. Yong-Yil Choi, 2004. "The macroeconomic impact of foreign labour influx into the industrialized nation state and the complementary policies," Applied Economics, Taylor & Francis Journals, vol. 36(10), pages 1057-1063.
    2. Golder, Stefan M. & Straubhaar, Thomas, 1999. "Empirical Findings on the Swiss Migration Experience," IZA Discussion Papers 40, Institute of Labor Economics (IZA).
    3. Stefan M. Golder, 2001. "Labor Market Performance of First-Generation Immigrants: Evidence from the Swiss Labor Force Survey," Swiss Journal of Economics and Statistics (SJES), Swiss Society of Economics and Statistics (SSES), vol. 137(II), pages 183-197, June.
    4. Golder, Stefan M., 1999. "The labor market performance of first-generation immigrants: Evidence for Switzerland," Kiel Working Papers 951, Kiel Institute for the World Economy (IfW Kiel).

    More about this item

    Keywords

    Aggregate Production; Guestworkers; Imports; Smoothing; Substitution and Complementarity;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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