Migration and growth in a Schumpeterian growth model with creative destruction

This paper incorporates endogenous migration into a second-generation Schumpeterian growth model to study how migration, innovation, and growth interact with one another. The paper finds that migration always enhances the rates of innovation and growth of the receiving economy, but implementing pro-innovation policies in the receiving economy does not lead to more migration when the gap in technical knowledge between countries is fixed over time. However, when the technology gap is allowed to adjust endogenously, the paper finds that implementing pro-innovation policies in the receiving economy shrinks immigration flows and reduces the cross-country gap of technology.

Automated summary

This paper examines the interaction between migration, innovation, and growth, finding that migration enhances innovation and growth in the receiving economy. However, implementing pro-innovation policies does not lead to increased migration when the technology gap is fixed. On the other hand, when the technology gap is allowed to adjust endogenously, implementing pro-innovation policies reduces immigration flows and narrows the international technology gap.