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A Contribution on the Empirics of Trade, Migration and Economic Growth for Australia and Canada

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  • Philip Bodman

Abstract

This paper examines the long-run dynamic relationship between openness, migration and economic growth for Australia and Canada through the estimation of a long-run aggregate production function for each economy using the Johansen (1988) procedure. Through the disaggregation of the capital input vector entering into each cointegrating relationship, the paper also provides new evidence concerning the importance of human capital, dwelling capital, government infrastructure capital and research and development capital for long-run economic growth. The estimates from the empirical analysis suggest that net migration, openness and integration favours the productivity and growth performance of both Australia and Canada, although the magnitude of these relationships is not large. [E23, F15]

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Economic Journal.

Volume (Year): 12 (1998)
Issue (Month): 3 ()
Pages: 41-62

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Handle: RePEc:taf:intecj:v:12:y:1998:i:3:p:41-62

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  1. Robert G. King & Charles I. Plosser & James H. Stock & Mark W. Watson, 1992. "Stochastic Trends and Economic Fluctuations," NBER Working Papers 2229, National Bureau of Economic Research, Inc.
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  13. Charles Adams & David T. Coe, 1990. "A Systems Approach to Estimating the Natural Rate of Unemployment and Potential Output for the United States," IMF Staff Papers, Palgrave Macmillan, vol. 37(2), pages 232-293, June.
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  15. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
  16. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
  17. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 531-55, May.
  18. Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
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Cited by:
  1. Fariastuti Djafar & Mohd Khairul Hisyam Hassan, 2013. "Does Trade With Labour Sending Countries Reduce Demand for Migrant Workers: A Lesson from Malaysia," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 3(10), pages 1325-1336, October.

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