The Economic Growth Policy and International Stability with Short-run Migration

Research Project

Project/Area Number	13630050
Research Category	Grant-in-Aid for Scientific Research (C)
Allocation Type	Single-year Grants
Section	一般
Research Field	経済政策(含経済事情)
Research Institution	Shiga University
Principal Investigator	SUZUKI Yasuo Shiga University, Department of Economics, Associate Professor, 経済学部, 助教授 (70244100)
Co-Investigator(Kenkyū-buntansha)	OGURA Akihiro Shiga University, Department of Economics, Associate Professor, 経済学部, 助教授 (20204159)
Project Period (FY)	2001 – 2002
Project Status	Completed (Fiscal Year 2002)
Budget Amount *help	¥3,700,000 (Direct Cost: ¥3,700,000) Fiscal Year 2002: ¥500,000 (Direct Cost: ¥500,000) Fiscal Year 2001: ¥3,200,000 (Direct Cost: ¥3,200,000)
Keywords	international economy / open macro-dynamics / economic growth policy and capital accumulation / productive factor mobility / labor mobility and / host country problem / two country economic model / foreign worker
Research Abstract	Firstly, a simple model of dynamic and international macro-economy is constructed on the supposition that only two countries exist in the world. And it is supposed that there is no capital mobility but labor mobility come only from the developing country internationally. Basic analyses of such models use the framework of economic growth theory. In the simplest case that international labor mobility takes place by the gap of wage rate between the two countries, it is the most possible case that the economic state as a couple of capital per labor and wage rate will have no dynamic equilibrium. In this case capital per labor will be instable and institutional parameters have larger effects upon the dynamic processes. The instable economic growth is advantageous to the developing country but disadvantageous to the advanced country. The economic policy on those parameters still has a little possibility to make the growth processes to be stable. Next, by reformulating the model more specifically about production techniques and population dynamics, international gaps of not only wages but also employment opportunities between the countries are taken into account. In such a case, the economic state of capital per labor and visited workers rate in the advanced country will have much possibly dynamic instability or no dynamic equilibrium. These results are not changed even taking account of the main tendencies of Japanese economy. So, the dynamic graphical and numerical dynamic analyses with suitable data will have little or no usefulness. The international growth will almost instable dynamically, and institutional parameters can soften the dynamic instabilities of each dynamic model.