This paper provides a micro-funded theory of multilateral resistance to migration analyzing how financial constraints determine migration trends. We build a RUM model in which we explicitly introduce the budget constraint in the migration decision: individuals cannot afford migrating to a...

This article focuses on an apparent conflict between the standard trade theory and available empirical evidence on factor flows. Theoretically, labor and capital flows must be substitutes. However, empirical papers find migration and FDI to be either substitutes or complements, depending upon...