This result differs from our model in several ways. Our model assumes that migration of labor from one country to another occurs but no trade in goods and services takes place. Also, the amount of capital is fixed and does not move between the two economies. Hence, with a CRS production process, this results in a decrease MPL. Therefore, when labor moves from
This result differs from our model in several ways. Our model assumes that migration of labor from one country to another occurs but no trade in goods and services takes place. Also, the amount of capital is fixed and does not move between the two economies. Hence, with a CRS production process, this results in a decrease MPL. Therefore, when labor moves from