Download economic growth

Chapter 10
International
Trade and
Economic Growth
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Topics to be Covered
• Economic Growth and Development
• Economic Development Strategies:
– Primary Export-led Strategy
– Import-substitution Strategy
– Outward-looking Strategy
• Neutral Economic Growth
• Protrade vs. Antitrade Biased Growth
• Types of Technological Change
• International Flows of Labor and Capital
• Economic Analysis of Labor Migration
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10-2
Economic Growth
• An economy is said to grow when its total
real output or gross domestic product (GDP)
rises.
• Per capita GDP is a measure of a country’s
standard of living. For standard of living to
rise over time, GDP must grow faster than
the population.
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10-3
Economic Development
• Economic Development—refers to the achievement
of a quality of life for the average citizen of a
country that is comparable to that enjoyed by the
average citizen of a country with a modern
economy, such as the U.S.
• Economic development is characterized by:
–
–
–
–
High levels of consumption
Broad-based educational achievement
Adequate housing
Access to high-quality health care, etc.
• Economic growth is essential for economic
development.
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10-4
THE DEVELOPING COUNTRIES
• The first goal of economic development
is the alleviation of the dire conditions
billions face in developing countries
• Problems such as nutrition, poor
housing, lack of basic health care, lack
of an infrastructure to provide
amenities like clean water, and
illiteracy make it difficult for people to
improve the standard of living
• Economic development can be a
complicated concept
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10-5
THE DEVELOPING COUNTRIES
• We make the assumption that the
various aspects of economic
development all are positively
correlated with a country’s GDP per
capita
• International economics is concerned
with the relationship of international
trade and the rate of economic growth
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10-6
THE DEVELOPING COUNTRIES
• GDP of Developing Countries
– There are approximately 145 developing
countries in the world economy and they
contain 84.3 percent of the world’s
population
– In 2005, GDP per capita in the middleincome countries was $2,782 per year and
for low-income countries GDP per capita is
on average $602 per year
– Middle-income countries are the fastest
growing economies of the three groups
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10-7
THE DEVELOPING COUNTRIES
Table 11.1
Distribution of World Population and Economic Output, 2005
GDP
per
capita
Low-Income
Economies
Middle-Income
Economies
High-Income
Economies
Population
(millions)
% of World
Population
Population
Growth
1990-2000
$602
2,352
36.5%
2.1%
$1,416,212
3.2%
$2,782
3,075
47.8%
1.3%
$8,553,721
19.2%
$34,316
1,011
15.7%
0.7%
$34,687,058
77.7%
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Total GDP
(millions
of $)
% of
World
GDP
10-8
THE DEVELOPING COUNTRIES
• Although the standard of living in
middle-income countries is low, it
pales in comparison to the economic
problem of the low-income countries
• GDP per capita in these countries is
approximately $600 per year
• This implies a standard of living of
approximately $1.60 per day.
• Some of the worst effects of poverty
are the norm
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10-9
THE DEVELOPING COUNTRIES
• From an economic geography point of view, levels
of development are not spread evenly around the
world
• The high-income economies are concentrated in
North America and Western Europe
• The former communist countries of Eastern
Europe are middle-income countries that have a
good chance of becoming high-income countries
• In the Western Hemisphere, virtually all of the
countries except the U.S. and Canada are either
low- or middle-income countries
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10-10
THE DEVELOPING COUNTRIES
• In Asia, Japan, Singapore, Australia, and New
Zealand are the only high-income countries
• Nearly 2 billion people in Asia are concentrated in
the low-income economies of China and India
• Africa is split between low- and middle-income
economies
• The countries along the Mediterranean Basin are
middle-income countries
• Most of the countries of sub-Saharan Africa, with
the exception of South Africa, are in the low-income
category
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10-11
ECONOMIC GROWTH
• Preconditions for Growth
– There are two important preconditions for
economic growth, property rights and the rule
of law
– For markets to work, it must be clear who
owns what
– If property rights are not being properly
enforced, then far fewer transactions occur
with the result of a lower level of economic
activity
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10-12
ECONOMIC GROWTH
• Normal economic transactions involve
legally binding contracts
• If there is no effective referee to
enforce business contracts, then far
fewer business contracts occur with
the result of a lower level of economic
activity
• In many developing countries these
conditions are not being met
• This situation is called failed state
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10-13
ECONOMIC GROWTH
• Economic Growth and the Factors of
Production
– In order for an economy to grow, it needs
resources – factors of production
– Since land is generally fixed, the focus will be
on labor, capital, and technology
– A country’s labor force can increase through
population growth or immigration
– An increase in the labor force will tend to
increase the GDP
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10-14
ECONOMIC GROWTH
• Economic growth also requires an increase in
the stock of capital
• Capital is the amount of money invested in
business structures and equipment
• For a developing country, the stock of capital
outside of the private sector may be critically
important
• In order for capital and labor to produce the
maximum output, the economic infrastructure
of the country needs to be appropriate to the
level of economic development
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10-15
ECONOMIC GROWTH
• In economics, technology is anything
that causes resources to be used in a
more efficient way
• Economic growth can also be enhanced
by having a country’s level of technology
increase over time
• A change in technology means that a
country can either produce more output
with the same amount of resources or
alternatively produce the same level of
output with fewer resources
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10-16
ECONOMIC GROWTH
• Basic Growth Theory
– The relationship between GDP and factors of
production is called the production function
– The shape of the production function reflects the
phenomenon of diminishing returns
– As the amount of a variable factor increases, the
resulting increase in output becomes smaller
– This effect is especially applicable in developing
countries with low initial GDPs and increasing
labor forces
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10-17
ECONOMIC GROWTH
Figure 11.1
Production Function for a Country
Real GDP (Y)
Y4
Y3
F
Y2
Y1
L1
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L2
L3
L4
Labor Force (L)
10-18
ECONOMIC GROWTH
• Changes in the Capital Stock and
Technology
– Businesses generally use loan proceeds to
invest in structure and/or equipment
– This increases capital stock and the
production function shifts upwards
– Because the capital-to-labor ration has
increased, the economy can now produce
more goods and services for any given size
labor force
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10-19
ECONOMIC GROWTH
Figure 11.2
Shift in the Production Function for a Country
Real GDP (Y)
F2
F1
Y2
Y1
L1
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Labor Force (L)
10-20
ECONOMIC GROWTH
• An improvement in technology should
allow the economy to produce more
goods and services with the same
level of labor and capital
• Labor and capital can be used more
efficiently
• The increase in the GDP is solely as
the result of being able to utilize the
same amount of capital and labor to
produce more goods and services
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10-21
Trade and Growth
• Economic growth is shown graphically as an
outward shift of the country’s production
possibility frontier (PPF).
• Since growth affects both production and
consumption, then it also affects
international trade.
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10-22
INTERNATIONAL TRADE AND
ECONOMIC GROWTH
• Openness and growth
– The more a country trades, the faster the
economy should be able to grow
– There is evidence of a positive correlation
between openness to trade and growth
– Openness causes an improvement in
technology
– Improved technology leads to improved
total factor productivity, getting more
outputs from the same inputs
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10-23
Table 11.2
Highest-Ranking
Countries
Economic Freedom Index, 2007
Economic Freedom
Index
Lowest-Ranking
Countries
Economic Freedom
Index
Hong Kong
89.29
Guinea-Bissau
45.71
Singapore
85.65
Angola
43.47
Australia
82.69
Iran
43.33
U.S.
81.98
Rep. of Congo
43.00
New Zealand
81.59
Turkmenistan
42.54
U.K.
81.55
Burma
40.14
Ireland
81.31
Zimbabwe
35.81
Luxembourg
79.31
Libya
34.48
Switzerland
79.05
Cuba
29.68
Canada
78.72
North Korea
3.000
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10-24
INTERNATIONAL TRADE AND
ECONOMIC GROWTH
More open economies tend to have
higher rates of growth of total factor
productivity
• This is a complex issue and while the
relationship between openness to
trade and growth appears to exist, no
one is sure of the size of the effect
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10-25
INTERNATIONAL TRADE AND
ECONOMIC GROWTH
• Capital Flows, Technology Transfers, and
Economic Growth
– Increasing the capital stock and the level of
technology in developing countries is difficult
– In developing countries, the savings are low
and the level of technology is below the
world average
– FDI helps developing countries increase their
capital stock
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10-26
INTERNATIONAL TRADE AND
ECONOMIC GROWTH
• Transfer of technology from developed to
developing countries also increases the rate
of economic growth
• But technology and knowledge are hard to
measure
• Thus limits the ability to accurate analyze the
effects of these technology transfers
• FDI flows bring in improved technology
• Trade drives specialization and learning which
improves knowledge which increases total
factor productivity even without FDI
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10-27
The Effects of Economic Growth
(cont.)
• Growth is usually biased: it occurs in one
sector more than others, causing relative
supply to change.
– Rapid growth has occurred in U.S. computer
industries but relatively little growth has occurred
in U.S. textile industries.
– According to the Ricardian model, technological
progress in one sector causes biased growth.
– According to the Heckscher-Ohlin model, an
increase in one factor of production (ex., an
increase in the labor force, arable land, or the
capital stock) causes biased growth.
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5-28
10-28
Fig. 5-6: Biased Growth
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5-29
10-29
The Effects of Economic Growth
(cont.)
• Biased growth and the resulting change in
relative supply causes a change in the terms of
trade.
– Biased growth in the cloth industry (in either the
domestic or foreign country) will lower the price of
cloth relative to the price of food and lower the terms
of trade for cloth exporters.
– Biased growth in the food industry (in either the
domestic or foreign country) will raise the price of
cloth relative to the price of food and raise the terms
of trade for cloth exporters.
– Suppose that the domestic country exports cloth and
imports food.
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5-30
10-30
Fig. 5-7a: Growth and Relative
Supply
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5-31
10-31
Fig. 5-7b: Growth and Relative
Supply
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5-32
10-32
Pro-trade Biased Growth
When growth occurs as a result of an increase in
the resource used intensively in the production
of export goods, then the output of export
goods will rise relative to import production, and
international trade will expand by more than the
rate of growth of GDP. This is called pro-trade
biased growth
Export-biased growth reduces a country’s terms of
trade, generally reducing its welfare and
increasing the welfare of foreign countries.
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5-33
10-33
anti-trade biased growth
• When growth occurs as a result of an
increase in the resource used intensively in
the production of import goods, then the
output of import goods will rise relative to
the output of export goods, and the
international trade of this country will fall.
This is anti-trade biased growth
Import-biased growth increases a country’s
terms of trade, generally increasing its
welfare and decreasing the welfare of
foreign countries.
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10-34
Strategies for Economic
Development
• Primary Export-led Development Strategy
• Import-Substitution Development Strategy
• Outward-looking Development Strategy
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10-35
Primary Export-Led
Development Strategy
• This strategy involves policies designed to
exploit natural comparative advantage by
increasing production of a few export goods
most closely related to the country’s
resource base.
• Country examples include Columbia (coffee),
Mexico and Nigeria (petroleum), and
Malaysia (rubber).
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10-36
ECONOMIC DEVELOPMENT
STRATEGIES
• Revenues from primary production
may allow a country to finance
infrastructure development and the
importing of capital equipment more
easily than a country without such
resources
• Primary production may be the start of
a process of producing a final good
• Adding value to a primary product is an
obvious first step in economic
10-37
development
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Advantages of Primary Exportled Development Strategy
• This strategy would encourage more
intensive use of existing or abundant
resources.
• It could help attract foreign investment.
• It may provide linkage effects or benefits to
other industries as a result of one industry
expanding.
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10-38
Arguments Against Primary
Export-led Strategy
• The world markets for primary products do
not grow fast enough to support this type of
development.
• The prices of primary products relative to
the prices of manufactured goods will tend
to fall over time due to sluggish demand or
oversupply.
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10-39
ECONOMIC DEVELOPMENT
STRATEGIES
• Primary products can be a problem with
respect to economic development
• The prices of primary products tend to be
volatile/fluctuate
• If both the demand and supply of the product
are inelastic, then most of the changes in
demand and supply are reflected in the price
• For many countries, primary products are a
high percentage of exports or GDP
• The volatility of prices can cause major
changes in terms of trade or instability for the
whole economy
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10-40
ECONOMIC DEVELOPMENT
STRATEGIES
Table 11.4
World Primary Commodity Prices, 2000-2005
(Percentage change over previous year)
Commodity Group
2000
2001
2002
2003
2004
2005
1.7
–3.6
0.8
8.1
19.4
12.1
Food & Tropical Beverages
–0.1
0.4
0.4
2.3
13.2
8.8
Vegetable Oilseeds & Oils
–20.3
–6.4
24.9
17.4
13.2
–9.5
Agricultural Raw Materials
3.1
–3.9
–2.4
19.8
9.9
7.1
Minerals, Ores, & Metals
12.4
–10.8
–2.7
12.4
40.7
26.2
Crude Petroleum
56.6
–13.3
2.0
15.8
30.7
41.3
All Commodities
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10-41
Terms of Trade of Developing
Countries
• Refer to Figure 10.1
• Terms of trade of oil exporting countries have
experienced sharp increases; non-oil exporters have
more stable, terms of trade.
• A group of countries with market power can
improve its terms of trade by restricting supply.
• The declining terms of trade of non-oil exporters is
more likely due to policies of other developing
countries (i.e., OPEC) than to market conditions in
developed countries.
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10-42
FIGURE 10.1 Terms of Trade of
Developing Countries
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10-43
ECONOMIC DEVELOPMENT
STRATEGIES
• Import Substitution
– The purpose of an import substitution
development strategy is to increase the
relative size of the manufacturing sector
– It can allow faster initial growth of the
manufacturing sector
– The country may conserve /organize on
supplies of foreign exchange by importing
fewer manufactured products which may
improve the trade balance
– Some of the protected industries might in the
future have a comparative advantage
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10-44
ECONOMIC DEVELOPMENT
STRATEGIES
• If the economy at an early stage of economic
development does not have a comparative
advantage in manufactured products, is there a
way to increase the size of this sector?
• Yes, Governments can use domestic policies
such as low taxes on manufacturing, direct
government subsidies, or trade policy to favor
the manufacturing sector
• If tariffs are not sufficient to increase output,
then quota protection could be instituted
instead of or along with tariffs
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10-45
ECONOMIC DEVELOPMENT
STRATEGIES
• Import substitution has created a number
of problems for the countries that pursue it
• Infant manufacturing sector is not
internationally competitive and is producing
substitutes for imports that cost more and
may be of lower quality
• This reduces the welfare of consumers
and/or their ability to produce other goods
and services at competitive prices
• Protected industries are larger than they
should be in a free market
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10-46
ECONOMIC DEVELOPMENT
STRATEGIES
• Since the economy is not using its resources
efficiently, it is not growing as fast as it could
• Slow economic growth may mean slow
growth in employment
• With a growing labor force this is a problem
• An import substitution policy tends to make
the domestic industry more capital intensive
than would otherwise be the case further
reducing job creation
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10-47
ECONOMIC DEVELOPMENT
STRATEGIES
• It will be difficult to withdraw protectionism as
firms and workers in the protected industry
will lobby to keep the current level of
protection from being removed
• The industries never adjust fully to world
competition and over time become relatively
more inefficient
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10-48
ECONOMIC DEVELOPMENT
STRATEGIES
• Beginning in the 1970s and continuing
into the 21st century, most countries
pursuing the import-substitution
development policy are in the process of
abandoning it
• Countries are willing to go through this
process now due to the widespread
realization that an inefficient
manufacturing sector does not enhance
overall economic growth
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10-49
ECONOMIC DEVELOPMENT
STRATEGIES
Table 11.5
Region/Country
GDP Growth in Developing Countries in Latin America
and Asia, 1990-2000 (Percentage Change)
Percent Change in GDP 1990-2000
Region/Country
Percent Change in GDP 1990-2000
Developing Countries
4.8
Latin America
3.3
Asia
6.0
Argentina
4.3
China
10.3
Brazil
2.9
Hong Kong
4.0
Chile
6.7
India
5.9
Columbia
3.0
Indonesia
4.2
Ecuador
1.8
Iran
3.6
Mexico
3.1
Israel
5.1
Peru
4.7
Malaysia
7.0
Uruguay
3.4
Pakistan
3.7
Venezuela
1.6
Philippines
3.3
Korea
5.8
Saudi Arabia
1.5
Singapore
7.9
Taiwan
6.4
Thailand
4.2
Turkey
3.8
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10-50
ECONOMIC DEVELOPMENT
STRATEGIES
• Export Promotion
– A development strategy based on developing
industries in line with the country’s
comparative advantage
– More effective than import substitution
– Export promotion implies an increase in the
relative size of the manufacturing sector
– For manufacturing to thrive/grow , there is an
active role for government
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10-51
ECONOMIC DEVELOPMENT
STRATEGIES
• The preconditions for growth are extremely
important
• Manufacturing usually is more infrastructure
intensive than agriculture
• The development of a sufficient infrastructure
will involve the participation of the government
• Services must be internationally competitive in
both price and quality
• Development of the manufacturing sector
requires increases in the amount of human
capital
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10-52
ECONOMIC DEVELOPMENT
STRATEGIES
• Taxation of industries must be
competitive in relation to competitive
countries
• The government needs to have
reasonable polices with respect to FDI
• The government needs to avoid
protectionism to the greatest extent
possible
• Exchange rates need to be determined
by market forces
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10-53
ECONOMIC DEVELOPMENT
STRATEGIES
• If executed properly, export promotion has a
number of advantages
• More resources flow into the comparative
advantage sectors and away from
comparative disadvantage
• Faster economic increase the rate of job
creation
• May improve the country’s chance of
creating a more favorable balance between
exports and imports
• It works better than import substitution!
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10-54
OFFICIAL DEVELOPMENT
ASSISTANCE
• Developed countries can assist developing
countries though what is popularly known as
“foreign aid”
• The correct term for this transfer of resources from
developed countries to developing countries to
assist in the process of economic development is
official development assistance (ODA)
• Accomplished through the actions of properly
functioning governments
• Is a small part of economic development
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10-55
OFFICIAL DEVELOPMENT
ASSISTANCE
• The Role of Official Development
Assistance
– Structural change is frequently accompanied
by an increasing degree of urbanization
– To accommodate a rising percentage of the
population living in urban areas, basic
infrastructure becomes more critical
– Infrastructure investment is not cheap and
governments of poor countries may be hard
pressed to afford these investments
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10-56
OFFICIAL DEVELOPMENT
ASSISTANCE
• Many of these investments require a
substantial amount of foreign exchange and
it may be difficult to obtain the needed
amount
• This is where ODA can play a valuable role
in the process of economic development
• Developing countries typically have small or
weak capital markets making long term
financing problematic
• The required sums are not as
formidable/huge to a developing country
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10-57
OFFICIAL DEVELOPMENT
ASSISTANCE
Table 11.6(a)
Net Official Development Assistance to
Developing Countries in 2005
Donor Country
Official Development
Assistance
($ Millions)
% of GDP
Australia
$1,449
0.20%
Austria
$1,260
0.41%
Belgium
$1,360
0.37%
Canada
$2,816
0.25%
Denmark
$1,739
0.67%
Finland
$693
0.36%
France
$8,862
0.42%
Germany
$9,236
0.33%
Greece
$207
0.09%
Ireland
$482
0.24%
$2,686
0.15%
$17,265
0.38%
Italy
Japan
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10-58
OFFICIAL DEVELOPMENT
ASSISTANCE
Table 11.6(b)
Net Official Development Assistance to
Developing Countries in 2005
Donor Country
Official Development
Assistance
($ Millions)
% of GDP
Luxembourg
$187
0.51%
Netherlands
$3,529
0.57%
$224
0.20%
$2,033
0.69%
$224
0.12%
Spain
$2,362
0.21%
Sweden
$2,256
0.63%
Switzerland
$1,407
0.38%
United Kingdom
$8,509
0.39%
United States
$25,836
0.21%
Total Assistance
$94,622
0.29%
New Zealand
Norway
Portugal
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10-59
Technological Change
• Technological (technical) change—
occurs when the same amount of output can
be produced with fewer factor inputs, or
when the same amount of inputs can
produce greater amounts of output.
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10-60
Types of Technological Change
• Neutral technological change—an
innovation that reduces by an equiproportionate amount the quantity of factors
required to produce a given level of output.
• Labor-saving (capital-saving)
technological change—an innovation that
leads to a reduction in the use of labor
(capital) relative to other factors in the
production of a given level of output.
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10-61
Industry Effects of Technical
Change
• If neutral technical progress occurs in one
industry, the output of that industry will
increase at the expense of the other.
• If technical progress allows an industry to
save on the use of the factor it uses less
intensively, then the output of that industry
could rise or fall.
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10-62
Economic Growth and Terms of Trade
for a Large Country
• With neutral economic growth, the terms of
trade of the large country will tend to fall as
the country grows.
• Pro-trade biased growth will cause the terms
of trade to deteriorate more than under
neutral growth.
• Anti-trade biased growth will lead to an
improvement in the terms of trade.
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Immizerising Growth
• Immizerising Growth—growth that results
in a reduction of the country’s welfare level.
• Refer to Figure 10.4 (next slide).
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FIGURE 10.4 Immizerizing Growth
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Is Immizerising Growth
Common?
• No, because:
– Precise conditions on both the nature of growth
and world demand must hold.
– Government policy (e.g., tariffs) can be used to
counteract the negative effects of growth.
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Dutch Disease
• The phenomenon of a boom or good
fortunes for one part of a country’s economy
eventually leading to very bad times for the
economy as a whole is known as the Dutch
disease.
• Refer to Global Insights 10.1 The Dutch
Disease
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International Flows of
Factors
• Labor and migration
• Capital and multinational corporations
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Labor Flows
• The U.S., Canada, Australia, and other
countries have experienced large inflows of
migrants (see Table 10.5).
• Migration has resulted from government
policies such as:
– Guest worker program (Europe) in which foreign
workers are invited to temporarily relocate and
work in a host country
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TABLE 10.5 U.S. Immigration,
1820–20051
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Reasons for Migrating
• Better economic circumstances in another
country.
• Refuge from political tyranny or devastation.
• Reunion with other family members.
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Brain Drain vs. Brawn Drain
• Brain Drain—process whereby skilled
workers leave their homeland and relocate
abroad.
• Brawn Drain—the outflow of unskilled
workers to other countries.
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U.S. Capital Flows
• In the 19th century, the U.S. was a capitalimporting country.
• For much of the 20th century, the U.S. was a
capital exporter.
• Since 1985, the U.S. has moved from being
the world’s largest net creditor to being the
world’s largest net borrower.
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Direct Foreign Investment and
MNC’s
• Direct Foreign Investment—happens
when a domestic firm acquires ownership or
control of the operations of a foreign firm.
• Multinational Corporations (MNCs)—
firms that own and operate capital in one or
more foreign countries.
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Features of U.S. MNCs
• Manufacturing accounts for the largest share
of U.S. MNC employment (refer to Table
10.6 Employment of Nonbank U.S. MNCs).
• Almost 70% of U.S. MNC employment is in
developed countries, primarily in Western
Europe (refer to Table 10.7).
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TABLE 10.6 Employment of Nonbank U.S.
MNCs in 2006 (worldwide, parent, and
affiliate)
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TABLE 10.7 Employment of U.S. MNC
Foreign Affiliates, by Area, 2006
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What Special Advantages do
MNCs Have?
• MNCs may have access to special
technology.
• There may be increasing returns to scale
that accrue to a firm operating plants in
many locations.
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Outsourcing
• Outsourcing—the movement or shifting of
production by a firm to a foreign location.
• See Global Insights 10.2 for more details.
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Economic Analysis of Factor
Movements
• The case of labor migration
• Definition of terms:
– Marginal Product of Labor (MPL)
– Diminishing Returns to Labor
– Value of Marginal Product of Labor (VMPL)
• Profit-maximizing Rule
• Effects of immigration of foreign workers
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Marginal Product of Labor
(MPL)
• MPL—the additional amount of output that
can be produced with the addition of one
more worker to the production process.
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Diminishing Returns
• Diminishing returns to labor—the fact
that as more and more workers are added to
the production process, holding all other
factors constant, the marginal product of
labor will eventually decline.
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Value of Marginal Product of
Labor (VMPL)
• VMPL—the monetary value of the marginal
product of labor or, alternatively, the
marginal revenue to producers from hiring
the last worker.
In equation form:
where P is product price.
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VMPL Curve and Equilibrium
• Refer to Figure 10.5
• VMPL curve is downward-sloping due to diminishing
returns and also represents the demand-for-labor
curve.
• Given a fixed supply of workers, the interaction of
the demand and supply in the labor market
determines the wage rate.
• The area under the VMPL curve represents labor
income and income paid to capital owners.
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FIGURE 10.5 Distribution of
Income Between Labor and Capital
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Effects of Foreign Labor
Migration
• Consider Figure 10.6 (next slide).
• Wages are driven downward.
• Increase in labor force results in more output
produced.
• There is an income redistribution effect: domestic
labor loses income while capital owners benefit
because the increased production leads to more
intensive use of capital and to a rise in its rental
prices.
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FIGURE 10.6 The Economic Effects
of Labor Immigration
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