Increasingly, immigration policies tend to favour the entry of skilled workers, raising substantial concerns among sending countries. The "revisionist" approach to the analysis of the brain drain holds that such concerns are largely unwarranted. First, sustained migratory flows may be associated...

A major shortcoming of the theoretical literature on international transfers is that it is not at all clear whether the welfare results obtained are consistent with transfers flowing from rich to poor nations. This is because economists hardly ever model the difference in wealth between the...

Higher domestic institutional quality has been statistically shown to lead to increased FDI inflows (Li & Resnick 2003; Busse & Hefeker 2007; Jensen 2008). Countries with higher quality governance infrastructure, which I define as the core institutions within a state that facilitate government...

This paper models a multilateral agreement on investment (MAI) as a coordination device. Multinational enterprises can invest in any number of countries. Without a multilateral investment agreement, expropriation triggers an investment stop by the single MNE. Under a multilateral agreement,...

In this paper we investigate the twofold effect of demographics on international factor flows in a model with endogenous policy constraints on both foreign direct investment and migration. Factor price differences between industrialized and developing countries create economic incentives for...

Empirical studies show that the elasticity of substitution between capital and labor is larger than one in developed countries but smaller in developing countries. This paper develops a production function which allows for this structure in the elasticity of substitution. The case of a falling...