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Rübel, G. Economic Welfare, International Factor Mobility and Non-tradeable Goods. Journal of Contextual Economics – Schmollers Jahrbuch, 114(1), 25-40. https://doi.org/10.3790/schm.114.1.25
Rübel, Gerhard "Economic Welfare, International Factor Mobility and Non-tradeable Goods" Journal of Contextual Economics – Schmollers Jahrbuch 114.1, 1994, 25-40. https://doi.org/10.3790/schm.114.1.25
Rübel, Gerhard (1994): Economic Welfare, International Factor Mobility and Non-tradeable Goods, in: Journal of Contextual Economics – Schmollers Jahrbuch, vol. 114, iss. 1, 25-40, [online] https://doi.org/10.3790/schm.114.1.25

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Economic Welfare, International Factor Mobility and Non-tradeable Goods

Rübel, Gerhard

Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 114 (1994), Iss. 1 : pp. 25–40

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Rübel, Gerhard

Abstract

This paper examines the welfare situation of existing residents of a country when factor immigration occurs. There is always an increase in welfare when there are nontradeable goods and a fall in overall capital intensity. If the non-tradeable good is relatively labor-intensive, the increase in the existing residents' welfare is larger, the larger the proportion of their income the immigrant workers send back to their country of origin. However, if the non-tradeable good is relatively capital intensive, the improvement in welfare is smaller, the larger the remittances.