International migration impacts domestic consumption and foreign debt permanently, study finds.
The article explores how international migration affects a small open economy over time. It shows that migration can lead to uncertainty in the economy, regardless of the type of capital markets. The researchers used a model to simulate different scenarios and found that migration has a lasting impact on domestic consumption and foreign debt in economies with perfect capital markets. In contrast, in economies with imperfect capital markets, migration only has temporary effects on various economic factors.