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ENDOGENOUS GROWTH AND GAINS FROM SKILLED IMMIGRATION

Mideksa, Torben (2007): ENDOGENOUS GROWTH AND GAINS FROM SKILLED IMMIGRATION.

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Abstract

A previous result by Kemnitz (2001) based on AK type endogenous growth model implied that the gains from immigration depends up on the percapita possession of capital stock by immigrant relative to that of the natives’. However, such a framework ignores the incentive labor creates for innovation and productivity. By using framework of horizontal innovation of Romer (1991), it is shown that immigration entails Pareto improvement even when immigrants posses no physical capital in contrast to the result in the literature.

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