In a dynamic model of emigration and return migration I examine the role of migration costs in the process of capital accumulation of the source country. Every migration attempt reduces the amount of savings available for capital accumulation. It contributes, however, to an increase in the...

This paper examines how attractive investment opportunities available to temporary migrants in their country of origin affect their saving behavior and the optimal duration of stay abroad. The model predicts an inverse U-shaped relationship between migration duration and the expected rate of...