Emigration, Immigration, and Skill Formation: The Case of a Midstream Country

Abstract

The word “international migration” usually refers to labor inflows for highly developed countries (HDCs) such as Germany, Japan, and the United States. For lower developed countries (LDCs) such as Bangladesh, Cambodia, and most African countries, migration implies an outflow of labor. Most of the economic literature has focused on mutual relationships between the source and host countries and studied the effects of international migration on the economies of those countries. However, globalization in the more recent past has resulted in several new types of international migration. In observing the recent expansion of multilateral economic integration between countries at various phases of development, we recognize that several medium-developed countries (MDCs) are playing a new role in the international labor market. These MDCs export labor to HDCs and, simultaneously, import labor from LDCs. In other words, these countries are coincidentally host as well as source countries and are at the midstream of international labor flows.

This paper was originally published by International Journal of Population Research, in 2014 (ID: 858460).

Appendix

The detailed calculations of the comparative statics are as follows:

$$ {\Delta}_1\frac{d{L}_B^S}{d\mu }=\left|\arraycolsep6pt\begin{array}{cc} 1 & \Phi \\ {} 0 & -a-{a}^{\prime} \end{array}\right|=-\left(a+{a}^{\prime}\right)<0, $$

$$ {\Delta}_1\frac{d{L}_{BC}^U}{d\mu }=\left|\arraycolsep6pt\begin{array}{cc} \Psi & 1 \\ {} 1-p+a & 0 \end{array}\right|=-\left(1-p+a\right)<0, $$

$$ {\Delta}_1\frac{d{L}_B^S}{d{\overline{w}}_A^S}=-{\Delta}_1\frac{d{L}_B^S}{d{\gamma}_1}=\left|\arraycolsep6pt\begin{array}{cc} -p & \Phi \\ {} 0 & -a-{a}^{\prime} \end{array}\right|=p\left(a+{a}^{\prime}\right)>0, $$

$$ {\Delta}_1\frac{d{L}_{BC}^U}{d{\overline{w}}_A^S}=-{\Delta}_1\frac{d{L}_{BC}^U}{d{\gamma}_1}=\left|\arraycolsep6pt\begin{array}{cc} \Psi & -p \\ {} 1-p+a & 0 \end{array}\right|=p\left(1-p+a\right)>0, $$

$$ {\Delta}_1\frac{d{L}_B^S}{d\tau }=\left|\arraycolsep6pt\begin{array}{cc} -W & \Phi \\ {} 0 & -a-{a}^{\prime} \end{array}\right|=W\left(a+{a}^{\prime}\right)>0, $$

$$ {\Delta}_1\frac{d{L}_{BC}^U}{d\tau }=\left|\arraycolsep6pt\begin{array}{cc} \Psi & -W \\ {} 1-p+a & 0 \end{array}\right|=W\left(1-p+a\right)>0, $$

$$ {\Delta}_2\frac{d{L}_B^S}{d\mu }=\left|\arraycolsep6pt\begin{array}{cc} 1 & \Phi \\ {} 0 & -a-2{a}^{\prime} \end{array}\right|=-\left(a+2{a}^{\prime}\right)<0, $$

$$ {\Delta}_2\frac{d{L}_{BC}^U}{d\mu }=\left|\arraycolsep6pt\begin{array}{cc} \Psi & 1 \\ {} 1-p+a & 0 \end{array}\right|=-\left(1-p+a\right)<0, $$

$$ {\Delta}_2\frac{d{L}_B^S}{d{\overline{w}}_A^S}=-{\Delta}_2\frac{d{L}_B^S}{d{\gamma}_1}=\left|\arraycolsep6pt\begin{array}{cc} -p & \Phi \\ {} 0 & -a-2{a}^{\prime} \end{array}\right|=p\left(a+2{a}^{\prime}\right)>0, $$

$$ {\Delta}_2\frac{d{L}_{BC}^U}{d{\overline{w}}_A^S}=-{\Delta}_2\frac{d{L}_{BC}^U}{d{\gamma}_1}=\left|\arraycolsep6pt\begin{array}{cc} \Psi & -p \\ {} 1-p+a & 0 \end{array}\right|=p\left(1-p+a\right)>0, $$

$$ \displaystyle {\Delta}_2\frac{d{L}_B^S}{d\tau }=\left|\arraycolsep6pt\begin{array}{cc} -W & \Phi \\ {} 0 & -a-2{a}^{\prime} \end{array}\right|=W\left(a+2{a}^{\prime}\right)>0, $$

$$ {\Delta}_2\frac{d{L}_{BC}^U}{d\tau }=\left|\arraycolsep6pt\begin{array}{cc} \Psi & -W \\ {} 1-p+a & 0 \end{array}\right|=W\left(1-p+a\right)>0. $$