1. Per-Åke Andersson 031-786 1353 per-ake.andersson@economics.gu.se
Globalisering och utveckling Karlstad Universitet, HT2010 F5: Migration och FDI
Per-Åke Andersson

2. INTERNATIONAL MOVEMENTS OF LABOR
Table 6.3 Immigrants as a percentage of the Population and the Labor Force, 2005
Country
Percentage of Population
Percentage of Labor Force
Europe
Sweden
5.3%
4.8%
Austria
9.7%
12.0%
Switzerland
20.3
20.9
Belgium
8.6
9.1
United Kingdom
5.2
5.4
Denmark
5.0
4.0
Japan
1.6
0.3
France
5.6
5.3
Traditional Immigrant Countries
Germany
8.8
9.3
Italy
4.6
6.0
Australia
23.8
24.9
Luxembourg
39.6
62.6
Canada
19.1
19.9
Netherlands
4.2
3.4
United States
12.9
15.2

3. Sveriges in och utvandring 1850-2000
Källa: Thomas Lind

4. INTERNATIONAL MOVEMENTS OF LABOR
Figure 6.2 Output and Welfare Effects of International Labor Migration
Wages in the U.S.
W’US
WUS
Sl’ Sl e d a F c b E
DUS
Labor Force in U.S.
Panel a
Wages in India
W’I WI
Sl’ Sl e’ d’ a’ F’ c’ b’ E’
DINDIA
Labor Force in India
Panel b

5. Immigration to the New World
Source: Alan M. Taylor and Jeffrey G. Williamson, 1997, “Convergence in the Age of Mass Migration,” European Review of Economic History, 1, April, 27–63.
© 2008 Worth Publishers ▪ International Trade ▪ Feenstra/Taylor

6. A P P L I C A T I O N 1
IMMIGRATION AFFECTS BOTH THE DEMAND AND THE SUPPLY FOR LABOR
APPLYING THE CONCEPTS #1: Although we normally think that increased immigration will reduce wages, what factors could cause it to raise wages?
A recent study by Gianmarco Ottaviano of the University of Bologna and Giovanni Peri of the University of California, Davis, estimated that during the 1990s immigration, on average, increased the average wage of U.S.-born workers by 2.7 percent.
They took into account that increased immigration led to increases in the supply of labor and additional investment, and as a result, both the demand and the supply for labor shifted, with the shift in demand slightly outpacing the shift in supply.
When they looked more closely at wages, they found the wages of high-school dropouts fell, while wages of workers with at least a high-school education increased. The reason for this difference was that high-school dropouts compete most directly with the new immigrants, whereas those workers with more education do not.

7. Gains from Immigration
World Labor Market
Foreign Wage
Workers move from Foreign to Home until equilibrium is reached at C, full migration, with wages equalized at W’
Wage, W
The Home wage, W determined by A, is higher than the Foreign Wage W* at A*
The gains to Home and Foreign from migration can be shown.
Gains to Home A A* W W* L B W’ C L’
Gains to Foreign
Home Wage
Figure 5.14 World Labor Market Initially, Home has OL workers and Foreign has O*L workers. The Home wage is W, as determined at point A, which is higher than the Foreign wage W * at A*. Workers will move from Foreign to Home to receive higher wages. The equilibrium with full migration is at point C, where wages are equalized at W ′. The gain to Home from migration is measured by triangle ABC, and triangle A*BC represents the gains to Foreign. 0’ L L*
World amount of labor
© 2008 Worth Publishers ▪ International Trade ▪ Feenstra/Taylor

8. Gains from Immigration
Table 5.3 Workers’ Remittances and Net Foreign Aid, 2005 Shown here are the remittances received by various countries from their citizens working abroad. In many cases, these remittances are larger than the official aid received by the countries. An exception was Sudan, which was experiencing a humanitarian crisis in 2005 so that aid was high.
Source: World Development Indicators, The World Bank.
© 2008 Worth Publishers ▪ International Trade ▪ Feenstra/Taylor

9. Kapitalflöden mellan länder: Utländska direktinvesteringar
Utländsk direktinvestering (FDI), när ett företag blir ägare till ett företag i annat land
I Sverige (och USA) gäller 10 % regeln.
Greenfield FDI—när ett företag bygger en fabrik/företag från grunden.
Acquisition FDI (Brownfield FDI)— när ett företag köper ett existerande företag
Geley, Spiker,

10. INTERNATIONAL MOVEMENTS OF CAPITAL
Table 6.1 Selected Indicators of FDI and International Production,
Value at Current Prices
(Billion dollars)
Annual Growth Rate
(per cent)
Item
1982
1990
2002
2005
FDI Inflows 59
202
651
916
–25.8%
–9.7%
27.4%
28.9%
FDI Inward Stock
647
1,789
7,123
10,130
9.7
20.6
16.1
6.1

11. INTERNATIONAL MOVEMENTS OF CAPITAL
Table 6.2 Regional Distribution of FDI Flows,
Region/Country
FDI Inflows
FDI Outflows
Developed Countries
59.4
85.8
European Union
40.7
54.6
Japan
0.8
49.9
United States
12.6
15.7
Other Developed Countries
5.3
10.6
Developing Countries
35.9
12.3
Africa
3.0
0.2
Latin America & the Caribbean
11.5
3.5
Asia & Oceania
21.4
8.6
Central & Eastern Europe
4.7
1.8
World
100.0

12. INTERNATIONAL MOVEMENTS OF CAPITAL
Figure 6.1 Output and Welfare Effects of International Capital Mobility
Return to Capital, U.S.
R’US
RUS
Sk’ Sk e d a F c b E
DUS
Capital Stock, U.S.
Panel a
Return to Capital, India
R’I RI
Sk’ Sk e’ d’ a’ F’ c’ b’ E’
DINDIA
Capital Stock, India
Panel b

13. Gains from Foreign Direct Investment
World Capital Market
Foreign Rental
Rental, R
Home rental rate (R) is lower than Foreign (R*).
Capital will move from Home to Foreign to receive a higher rental
Equilibrium with full capital flow is at B with rents equalized at R’
Gains to Foreign and Home can be shown
Gains to Foreign A A* R* R K K’ C R’ B
Gains to Home
Home Rental
Figure 5.15 World Capital Market With 0K units of capital at Home, the Home rental is R, at point A. The remaining capital 0*K is in Foreign, and the Foreign rental is R*, at point A*. Capital will move from Home to Foreign to receive a higher rental. The equilibrium with full capital flows is at point B, where rentals are equalized at R′. Triangle ABC measures the gains to Home from the capital outflow, and triangle A*BC measures the gains to Foreign. 0’ K K*
World amount of Labor
© 2008 Worth Publishers ▪ International Trade ▪ Feenstra/Taylor

14. © 2008 Worth Publishers ▪ International Trade ▪ Feenstra/Taylor
Det har skett ett stor ökning I Sverige av direktinve. Globalisering
30% anställda, globaliseringskommissionen
Skillnader I företag
© 2008 Worth Publishers ▪ International Trade ▪ Feenstra/Taylor

15. Foreign Direct Investment

16. Foreign Direct Investment