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International Political Economy Final
Migration, Development and the North-South Divide
28
Economics
Undergraduate 4
05/02/2010

Additional Economics Flashcards

 


 

Cards

Term
Hollifield Hypothesis: Why Migration
Definition
Derived from neolibral theory is that States are more willing to risk opening their economies to trade (and by extension migration) if there is some type of international regime or hegemonic power that can regulate these flows and solve collective action and free rider problems.
Term
Hollifield: Why Migration?
Definition

"But if the logic of trade and finance is one of openness, the logic of migration is one of closure."

 

"the wealthier states push hard to keep foreigners out, usually for reasons of national security or identity; whereas many poorer states want to export people, in order to reap the benefit of remittances or simply to maintain a social safety valve."

Term
Hollifield-Economics of Migration
Definition

  • Long Run, Trade can substitute for migration through a process of factor price equalization. 
  • Short-Run, Free trade can lead to increased migration, especially when disparities in wages and incomes are very high, e.g.-US & Mexico 
  • When backward economies are exposed to strong exogenous competitive pressures, the agricultural sector can collapse and lead to a rural exodus, swelling the population of cities and increasing pressures to emigrate.
  • Increased trade in services leads to high-end migration, because technical and professional staff are integral parts.

Term

Migration: Push/Pull Argument

 

Definition
heavily dependent on factor proportions and intensities, and that groups will support or oppose migration depending upon whether they represent scarce or abundant factors. 
Term
Political Realism-Migration
Definition

  • States or city-states are the key units of action
  • They seek power, either as an end or means to other ends
  • behave in ways that are rational and therefore comprehensible to outsiders in rational terms
Q: When is it in a states best interest to open its borders, or whether out- or in-migration will enhance the stat's power or national security.

Term
Neorealism- Migration
Definition

Emphasizes the systematic nature of international politics, and the fact that the system is structured by anarchy and that state behavior is conditioned by the distribution of power within this anarchic system.

 

  • They are caught in a security dilemma. 
    Must Ask Q's:
  1.  Whether or not international migration has a national security dimension and 
  2. To what extent migration and migration policy are structurally determined?

Father of neolibralism-Kenneth Waltz

Term
Arguments against Migration into Advanced Industrial Democracies
Definition

 

  • Economic-Foreigners take jobs from natives
  • Cultural- Foreigners threaten the political & cultural cohesion of society and the nation.
  • Also raises concerns of:  Terrorism, Drug Trafficking, and Environmental degradation b/c of overpopulation. 

 

Term
Migration according to George Borjas
Definition

 Friends or Strangers? 

Immigration policy should be driven by national economic interests, which should determine whether migrants are friends or strangers. 

Uses a strict cost-benefit calculus to determine if migrants have the requisite skills (human capital) needed by the national economy. (E.g- US economy no longer needs a large pool of unskilled and uneducated (mostly Mexican) immigrants, and will cause inequalities in American society and weaken national economy.

Term
Migration according to Gary Freeman
Definition

Rational-choice/pluralist framework for explaining the difficulties that liberal democracies encounter in their attempts to restrict immigration. 

Argues Even though it may be in the national interest to restrict low-skilled immigration, restrictions have been difficult because powerful business interests, ethnic lobbies, intellectuals, and others have captured the state. 

Term

National Identity Approach to Migration 

Brubaker

Definition

Framed by Brubaker

Focuses on citizenship policy not immigration policy. Explains why the French were very liberal versus Germany (*E/W. Germans)

Term
Bureaucratic Models -Calavita
Definition
The role they play in affecting the policy in framing public debate and direct influence on policy makers, and have latitude on how they enact policy. E.G. go after employers with undocumented workers? Round-up Illegal immigrants?
Term
Migrant Remittances
Definition

Migrants send a substantial amount of income from host country to home country. This wasn't on the radar until a few years ago by immigration scholars who looked and found that $300 billion was being sent from host countries to developing countries. This was not even counting unofficial flows (which increases the number by 50%). Therefore it isn't really in the developing countries' interest to push immigration law/policy. 

Term

Migration: "Harmony of Interests"


Definition

Developed countries continue to need immigration. More countries become industrialized which lower their birthrates. 

1. Birth rate isn't sufficient enough to replace labor flows

2. Welfare States--> Aging  societies increases causing less people to produce labor/services. 

 

No longer paying into Soc. Sec.--> instead Drawing out funds as seen in US.

3. Economies generally have been growing since WW1 in developing countries. 

Increase the institutionalization of Immigration process so the state can manage social network and migrant ties to maintain a steady flow of remittances. *Protect that population from dangerous ways to get into another country e.g. human smuggling, illegal border crossing et.c. 


Term
Howard Chang Migration-> Treat it like Trade (libralization)
Definition

For labor migration-> if you treat it as trade. If you want Protection, you should use quatas, or taxes/tariffs. 

Allows labor to get its highest return on its marginability and to go where they will be productive. The gains and losses can be made up through taxes. Keep door open and tax the difference.

 

*This is not going to stop low-skilled immigration but it means that only the highly motivated will come. Take revenue to attract high-skilled immigrants. 

*The politics of migration are more complex than trade and capital and involves more than just economic interests. 

Term

Migration--> "Strange Bedfellow" Coalitions

 

Definition

Labor and social conservatives favor closed borders and tight controls on immigration.

Human rights liberals and fiscal conservatives favor openness.  


The Uruguay Round of trade negotiations, 1994 created GATS, but in spite of larger efficiency gains that libralized immigration policies produce, the GATS were careful to avoid imposing any obligations with respect to immigration policies.

Term
Critique of Mundell Flemming Immigration Policy
Definition

The Theory: "Great Trilemma" Built on H-O model and based on trade and factor mobility which are substitutes that when you open up trade, both push and pull will equalize it. Capital-looking for returns decreases while Wages- in one industry v. another--> Comparative Advantage country will pull up when good and push down when bad. 

*Politically NAFTA was a tough sell, because of what it would do to immigration to the US. Since NAFTA there has been Rising Immigration to the US for 10 years and there's no sign of equalization. Therefore it takes more than just wage equalization to offset immigration pressures. It looked great on paper but didn't do what they expected.

Term
The poverty Gap
Definition
A way of measuring how poor a population is . Take the Total AMT it would take to bring those under the poverty line above it. Measures the depth of poverty and the SCOPE of how long it will take to solve the poverty problem. 
Term
Wealth Distribution
Definition

Per Capita GNP '/, population

 

This can be misleading tho. The Lorens curve shows how skewed the distribution of wealth is. The greater the curvature the greater the skewed distribution of wealth... Has higher concentration of wealth or poverty.

Term
Lorenz Curve & Gini Coefficient
Definition

The Lorenz curve shows how skewed the distribution of wealth is.

 

The Gini Coefficient is the numerical representation of how much bend is in the curve. 

 

*A number between zero and one. A non graphic tool to compare countries. 

Term
Effects of Inequality on Development
Definition

1. Leads to economic inefficiency: smaller domestic market for goods.

2. lower levels of investments.

3. Lack of access to credit/loans. 

4. Inequality leads to inefficient allocation of assets-EX: Emphasis on higher-rather than primary and secondary education-reflects state interests (the Elite). 

5. Inequality leads to political instability

4. More Poverty--> Higher poor health--> Decreased productivity

Term
OECD - Development Classification
Definition

Organization for Economic Cooperation and Developmen- OECD is a mulitlateral organization of the industrialized countries. 

 

Term
World Bank Classification of Development
Definition

Ranks countries on the basis of their gross national income or GNP per Capita

Groups countries by level: OECD and other high income countries

Upper-middle income countries UMC

Lower-middle countries LMC

Low-income countries LIC

"Developing countries" are classifies as LOW to Upper-middle income countries (LIC,LMC, and UMCs)

 

Term
Human Development Index (HDI)
Definition

Established by the UNDP (united nations development program)

 

Tries to measure development in terms beyond simple income per capita

 

3 primary criteria:

1. Longevity= life expectancy at birth (of population)

2. Knowledge= adult literacy + average years of education

3. Standard of living= real per capita income adjusted for purchasing power parity (PPP). 

Term

Human Development Index (HDI)- Advantages

Definition

More to life than just income. It adds a human dimension to the classification

Allows us to see that some countries w/ low income may be more successful than we expected

Conversely, it shows that some more "developed" countries accomplish little in human development.

Allows us to focus policies on those areas most in need of improvement. 

Term
Absolute Poverty
Definition

People who don't have enough to meet basic needs.

 

The minimum level of income that is necessary to meet basic needs is called the "Poverty Line"

Term

 

 

 

Headcount Index

Definition

The number of people below the poverty line as a fraction of a total population. 

 

*CRITQUE:

This measure doesn't give us a sense of how far below the poverty line people are, or how much the population is either closer or farther from the poverty line. 

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