International Human Trafficking: Theory and Solution

26 Pages Posted: 30 Nov 2011

See all articles by Pak-Hung Mo

Pak-Hung Mo

Hong Kong Baptist University (HKBU)

Date Written: November 1, 2011

Abstract

In this paper, we build a simple model to explain the choice of migration method and the root causes of international human trafficking (IHT). Our analyses result in several implications on the problems related to IHT. First, IHT is driven by poverty and international productivity/living quality disparities. Second, the existing humanitarian and/or suppressive approaches cannot solve the problem. Third, the best option for solving the problem is setting up the ‘reciprocal direct investment’ (RDI) scheme between leading and lagged economies. The RDI scheme can facilitate improvements in the quality of public governance in lagged economies and directly promote international competition, efficiency, trade liberalization and division of labor. The resulting convergence in global living quality at a higher level across nations will eliminate the root causes of illicit migrations.

Keywords: human trafficking, global development, income disparities

JEL Classification: O2, F2

Suggested Citation

Mo, Pak-Hung, International Human Trafficking: Theory and Solution (November 1, 2011). Available at SSRN: https://ssrn.com/abstract=1966356 or http://dx.doi.org/10.2139/ssrn.1966356

Pak-Hung Mo (Contact Author)

Hong Kong Baptist University (HKBU) ( email )

Department of Economics
Kowloon, Hong Kong
Hong Kong

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