Migration in a Solow Growth Model
15 Pages Posted: 30 Mar 2010
Date Written: February 25, 2009
In this work we deal with the Solow-Swan economic growth model, when the labor force is ruled by the Malthusian law added by a constant migration rate I. Considering a Cobb-Douglas production function, we prove some stability issues and find a closed-form solution for the emigration case, involving Gauss’ Hypergeometric functions. In addition, we prove that, depending on the value of the emigration rate, the economy could collapse, stabilize at a constant level, or grow more slowly than the Solow-Swan model. Immigration also can be analyzed by the model if the Malthusian manpower is declining.
Keywords: Solow Growth Model, Migration, Hypergeometric Function
JEL Classification: C61, C62, O41
Suggested Citation: Suggested Citation