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International factor mobility and production technology.

H Kondo

    Journal of Population Economics
    |December 1, 1989
    PubMed
    Summary
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    International labor and capital mobility are driven by technology differences. Migration to superior technology lowers capital and child demand, while capital flows to labor-saving technology, reducing domestic capital per worker.

    Area of Science:

    • Economics
    • Economic Growth
    • International Economics

    Background:

    • International differences in production technology can influence factor mobility.
    • Understanding these dynamics is crucial for global economic policy.

    Purpose of the Study:

    • To investigate the patterns and effects of international factor mobility driven by technological disparities.
    • To analyze the impact of technology differences on labor migration and capital flows within an endogenous growth framework.

    Main Methods:

    • Utilizing an endogenous-population-growth and overlapping-generations model.
    • Analyzing steady states and factor movements under varying technological assumptions.

    Main Results:

    • International labor migration occurs towards countries with superior capital-saving or neutral technologies, leading to reduced capital-labor ratios and lower demand for children.
    Keywords:
    CapitalDemographic FactorsEconomic ConditionsEconomic FactorsFamily And HouseholdFamily CharacteristicsFamily SizeGenerationsHuman ResourcesInternational MigrationLabor ForceLabor MigrationMacroeconomic FactorsMathematical ModelMigrationModels, TheoreticalPopulationPopulation DynamicsPopulation GrowthProductionResearch MethodologyTechnologyWorld

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  • International capital flows to countries with superior labor-saving or neutral technologies, decreasing the domestic capital stock per worker.

    • Conclusions:

    • Technological disparities are a significant driver of international factor mobility.
    • Factor mobility, influenced by technology, has distinct effects on capital accumulation and demographic choices in different countries.