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By Timothy J. Hatton, Jeffery G. Williamson (auth.), Prof. Herbert Giersch (eds.)

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Extra info for Economic Aspects of International Migration

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There would have been no Anglo-American convergence without international migration. Wicksell's classical assumptions suggest that overseas migrations made a critical contribution to economic convergence between Old World and New in the late 19th century. D Relaxing Wicksell's Classical Assumptions Optimists in the migration debate would, no doubt, argue that the classical assumptions made thus far overstate the impact of the late 19th-century mass migrations. What follows is a list of the ones that, we suspect, the optimists would stress.

1989), Barro (1991), Barro and Sala-I-Martin (1991), and many others. It hilS also generated a "new growth theory" in which human capital accumulation and endogenous technical progress plays a richer role. With the exception of the economic historians, few of these economists have paid serious attention to history. And even the economic historians have paid little attention to the contribution that international commodity, labor, and capital market integration has played in the process; rather, the stress has been on the forces of technical change and human capital formation.

What occurred in the late 19th century was exactly the kind of exogenous relative price shock that is supposed to set factor-price equalization in motion. According to the FPE theorem, the invasion of grains should have raised real wages in the Old World while lowering them in New World, ceteris paribus. Did it? Actually, there are three questions here, not just one. First, were factor endowments really the key determinants of trade patterns in the late 19th century? Second, was there pronounced commodity price convergence in the late 19th century?

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