Friday, April 17, 2015

Immigration Article of the Day: The Global Economic Impact of Open Borders by Nathanael Smith

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The Global Economic Impact of Open Borders by Nathanael Smith, Fresno Pacific University April 3, 2015

Abstract: Open borders, in the sense of the abolition of policies restricting migration, would cause billions of people to migrate, and result in almost a doubling of world GDP. Based on a model that stresses human capital as a determinant of the wealth and poverty of nations, but which also has a spatial element and allows total factor productivity to differ across cities, two open borders scenarios are constructed. In the first, "pure market clearing" scenario, world GDP rises 91% as 82% of the world's population migrates, mostly to the West, and the living standards of unskilled workers worldwide rise to 26% of the US level. In the second scenario, with several adjustments made to favor greater realism at the expense of some arbitrariness, world GDP rises 85% as 58% of the world's population migrates, and the living standards of unskilled workers worldwide rise to 31% of the US level.

KJ

https://lawprofessors.typepad.com/immigration/2015/04/immigrtaion-article-of-the-day--2.html

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