This paper examines the welfare implications associated with different degrees of diversity or similarity between migrants and natives under both migration and trade. We use a general equilibrium model of migration, human capital and social capital and find that there are three equilibrium...

The purpose of the paper is to outline an analytical framework which captures the ample scope of locational competition: cost differences, resulting from differences in factor prices including taxes, human capital, infrastructure services and total factor productivity. If cost differences are...

This paper investigates the trade migration link within a Ricardian model à la Eaton and Kortum (2002) and it quantifies the pro-trade effects of immigrants for 18 manufacturing sectors in a sample of 19 OECD countries. The results are robust across different econometric specifications and they...

A growing strand of literature highlights that skilled migration may favour growth-enhancing technology transfer, trade and foreign direct investments between the source and the host economies of migrants (net-work effects). We explore a specific channel through which the possible "diaspora...

Standard trade theory suggests indifference between free trade and free migration as both lead to factor price equalization. Rich countries, however, prefer free trade to free migration. This inconsistency can be explained by incorporating the impact of social capital. The movement of people...

PTAs are generally negotiated without any tariff concessions or transfers to non-member countries. Can such a PTA benefit the neighbors' welfare? In a two-good competitive equilibrium model in the absence of an entrepôt, a PTA without concessions to the outside will hurt the outsider's welfare...