Question

Assume that both economies are in the steady state, and they reach an agreement that allows free movement of workers (not capital) across the two countries. What type of migration patterns would you expect across the two countries? Why? Who benefits and who loses from the migration flow?   

Answer 1

A steady state economy refers to a stable national economy which means that the fluctuations of the market system of economy is lesser and the effects of economic burdens are not seen on its citizens. An economy reaches a steady state after a period of growth. Migration refers to the movement of people either local, regional, domestically or global. The above situation refers to international or global migration which are of two major types with reference to the country under migration. Immigration refers to the inward movement in to a nation and emigration refers to the movement out of the nation. A lot of factors affect the international migration which can be either pull or push factors. A pull factor attracts a migrant to other economies like better standard of living, better jobs and opportunities, better environment, political stability etc. Push factors like war, economic breakdown, natural calamities etc forces the citizens to move either domestically or globally.

                                    The above situation clearly defines that the economies of two nations are stable and henceforth the economic criteria cannot be a determining factor for migration. But there are many other pull factors that promotes migration. The following cases can be analysed

· Although the economies remain stable, the presence of a better environment may become a pull factor which leads to a population change and better economic distribution which may be advantageous to both nations.

· The presence of a better and stable political pattern may attract migration which has no advantage to the incoming country, but may result in population fall from which someone migrates.

· Although the economies are stable, the value of an economy may differ and hence people will be attracted towards nations having better payout capabilities which may attract immigration. The above act will result in ‘Brain drain’ and would be disadvantageous to the country from which the migration happens.

                                                          Thus on analysis, it can be seen that apart from economic factors, many other factors forms the basis of migration and the analysis solely depends on the reasons for which these happens..