Abstract
Although capital is often portrayed as being more internationally mobile than labor, the theory of labor migrations typically ignores capital flows. Economic historians provide long-term evidence suggesting close linkages between capital and labor movements for “high” labor immigration/emigration economies. Analyzing this linkage shows that labor-cum-capital migrations have distinctive economic effects compared to labor migrations alone. These distinctive effects impact on international economic economic convergence. GNP per head is invariably a poor indicator of development trends when labor (with or without capital) migrates.
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Clarke, H.R. International labor-cum-capital migrations: Theory, welfare implications, and evidence. Open Econ Rev 6, 323–340 (1995). https://doi.org/10.1007/BF01000386
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DOI: https://doi.org/10.1007/BF01000386