Trans-boundary Pollution and
International Migration
School of Economics, Chukyo University, Nagoya, JAPAN
FAX: +81-52-835-7197, e-mail: kkondo@mecl.chukyo-u.ac.jp
In this paper we analyse the welfare effect of international migration under the existence of trans-boundary pollution. We use a simplified Copeland and Taylor (1999) model - a two-country, two-good and two-factor (one of which is environmental capital and the specific factor to produce manufacturing good) Ricardian general equilibrium model. The developed Home country (under-developed Foreign country) is superior (inferior) in terms of the pollution abatement technology and thus it has relative advantage in the production of the environmentally sensitive agricultural good (the manufactured good which emits pollution). If there is no trade, workers will migrate from the Foreign country to the Home country. Regardless of the existence or method of remittance, generally speaking, the Foreign country gains from migration, but whether the Home country gains depends on the technology gap and the magnitude of trans-boundary pollution. If a free trade equilibrium exists, international migration occurs when the demand for the manufactured good is not large and thus the Home country specializes in the production of manufactured good. Migration will expand the production of the manufactured good as well as international trade.