Title: Complementarity between Immigration and Inward FDI: A General Equilibrium Model of Two-way Migration and Firms
Speaker: Chun-Kai Wang
Abstract:This paper discusses the interaction between migration and FDI. The model makes two key assumptions: 1) Workers from different countries are imperfect substitutes; 2) Different types of firms and workers have varying compatibility. Under these assumptions, we show that immigration and inward FDI between two countries are complements. Due to the selection and reallocation effect of inward FDI, this complementarity implies that immigration policy liberalization may increase the aggregate productivity in the long-run. Finally, we present a quantitative analysis showing that mutual migration policy liberalization is potentially beneficial to all workers.(JEL Codes: E22，F22)
Chun-Kai Wang:Chun-Kai Wang, assistant professor from School of Economics, Shandong University. His research of interests lie in International Trade, Economic Growth and Migration. His awards include Independent Innovation Research Grant, Shandong University, 2015.
Date: May17th,Thursday, 2018
Time: 12:30-15:45 PM
Location:Room 608, Academic Hall, CUFE