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Relaxing the Restrictions on the Temporary Movement of Natural Persons: A Simulation Analysis

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  • Walmsley, Terrie L.

    ()
    (Purdue University)

  • Winters, L. Alan

    ()
    (World Bank)

Abstract

While the liberalisation of trade has been at the forefront of the global agenda for many decades, the movement of natural persons remains heavily guarded. Nevertheless restrictions on the movement of natural persons across regions impose a cost on developing and developed economies that far exceeds that of trade restrictions on goods. This paper uses a global CGE model to investigate the extent of these costs, by examining the effects of an increase in developed countries’ quotas on both skilled and unskilled temporary labour equivalent to 3% of their labour forces. The results confirm that restrictions on the movement of natural persons impose significant costs on nearly all countries (over $150 billion in all), and that those on unskilled labour are more burdensome than those on skilled labour.

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Bibliographic Info

Article provided by Center for Economic Integration, Sejong University in its journal Journal of Economic Integration.

Volume (Year): 20 (2005)
Issue (Month): ()
Pages: 688-726

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Handle: RePEc:ris:integr:0337

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Web page: http://econo.sejong.ac.kr/
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Related research

Keywords: Applied general equilibrium modeling; Temporary Movement of natural persons; GATS Mode 4; Skill; Welfare;

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  1. Donald R. Davis & David E. Weinstein, 2002. "Technological superiority and the losses from migration," Discussion Papers 0102-60, Columbia University, Department of Economics.
  2. Hamilton, Bob & Whalley, John, 1984. "Efficiency and distributional implications of global restrictions on labour mobility : Calculations and policy implications," Journal of Development Economics, Elsevier, vol. 14(1), pages 61-75.
  3. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
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