Investment opportunities in the source country and temporary migration

This paper examines how attractive investment opportunities available to temporary migrants at home affect their saving behaviour and the optimal duration of stay abroad. The model predicts an inverse U-shaped relationship between migration duration and the expected rate of return on repatriated savings. A higher rate provides an incentive to go back earlier and consume less abroad, while it can also trigger emigration aimed at generating the savings required for investment after return. The paper illustrates how the behaviour of temporary migrants reflects the interaction between their preferences and the opportunities available in labour and capital markets of both countries.

Publication year:
In: Canadian journal of economics. - Downsview. - Vol. 43(2010), No. 2, p. 663-682

Note: The status of this file is: restricted

 Record created 2011-07-21, last modified 2019-09-30

Download fulltext

Rate this document:

Rate this document:
(Not yet reviewed)