Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/334191 
Authors: 
Year of Publication: 
2025
Series/Report no.: 
GLO Discussion Paper No. 1701
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
I examine the impact of population growth and endogenous migration on renewable natural resources (NR) and welfare in a general equilibrium model with two sectors - a commodity and a manufacturing sector, and with two inputs - labor and NR. Under population growth and no migration, a country's NR and welfare are unchanged (increase) (decline and eventually collapse) over time for constant (increasing) (decreasing) returns to scale in the manufacturing sector, i.e., for ϕ = (>)(<)1. Migration's impact is more complex. For instance, migration is nil under ϕ = 1. It results in convergence (divergence) between home and host countries under ϕ < (>)1, and benefits both countries only if ϕ < (>) 1 in the home (host) country. Thus, ignoring how the level of the manufacturing sector's returns to scale affects migration flows and their impact on NR and welfare is likely to lead to erroneous conclusions and policy implications.
Subjects: 
Migration
Population growth
Renewable natural resources (NR)
Impact on NR and welfare
JEL: 
F16
F18
Q27
Q56
Document Type: 
Working Paper

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