Discussion of the Papers by Professors Scott and Rieben
Mr Lundgren said that he had learned a lot from the papers. The most widely used international trade models assumed that factors of production were im- mobile. In fact, they were mobile enough to make the use of such theories dangerous. The theory of international labour migration had received very little attention. He could see two ways of approaching the problem. First, one could work out a theory of international exchange with limited labour mobility, and full mobility of capital. Or one might look at data, and test hypotheses as to why labour moved. The two papers both took the latter route. Professor Scott also discussed the effect of labour migration on income per head and capital formation. Perhaps income per head would be reduced a little in the receiving country; the contribution to capital formation in that country by immigrants was not great. They mainly brought human capital.
KeywordsCapital Stock Collective Bargaining Capital Formation Brain Drain Airline Pilot
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