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"Go West, Young Man, Go West!"?

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  • Peter Bushnell
  • Wai Kin Choy

    ()
    (New Zealand Treasury)

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    Abstract

    Will economic integration lead to skilled citizens being drawn to the larger, richer economic partner? In 1983, Australia and New Zealand signed the Closer Economic Relations Agreement to ensure free trade in goods and services. Was this a modern equivalent of Horace Greeley's famous advice "Go West, young man, go West"? The evidence presented in this paper suggests that Greeley was right; many have indeed gone westward. However, a common labour market has not led to a brain drain. Paradoxically, the effect has been to increase the numbers of lower-skilled migrants from New Zealand and those with higher skills who are older or are not within the approved occupational groupings. The Trans-Tasman picture is further complicated by migration to New Zealand from third countries sufficient to offset the outflow of New Zealand citizens. The imbalance in net migration from New Zealand toward Australia has led to policy tensions. These are discussed briefly.

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    File URL: http://www.treasury.govt.nz/publications/research-policy/wp/2001/01-07/twp01-07.pdf
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    Bibliographic Info

    Paper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 01/07.

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    Length: 23 pages
    Date of creation: 2001
    Date of revision:
    Handle: RePEc:nzt:nztwps:01/07

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    Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand
    Phone: +64-4-472 2733
    Fax: +64-4-473 0982
    Web page: http://www.treasury.govt.nz
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    Related research

    Keywords: international migration; brain drain;

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    1. anonymous, 1986. "Migration and the New Zealand labour market," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 49, july.
    2. Winkelmann, Rainer, 2000. "Immigration Policies and their Impact: The Case of New Zealand and Australia," IZA Discussion Papers 169, Institute for the Study of Labor (IZA).
    3. Brosnan, Peter & Poot, Jacques, 1987. "Modelling the Determinants of Trans-Tasman Migration after World War II," The Economic Record, The Economic Society of Australia, vol. 63(183), pages 313-29, December.
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    Cited by:
    1. Hayden Glass & Wai Kin Choy, 2001. "Brain Drain or Brain Exchange?," Treasury Working Paper Series 01/22, New Zealand Treasury.
    2. Nils Bjorksten, 2001. "The current state of New Zealand monetary union research," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 64, December.
    3. Davenport, Sally, 2004. "Panic and panacea: brain drain and science and technology human capital policy," Research Policy, Elsevier, vol. 33(4), pages 617-630, May.
    4. Cat Moody, 2006. "Migration and Economic Growth: a 21st Century Perspective," Treasury Working Paper Series 06/02, New Zealand Treasury.
    5. The Treasury, 2001. "Geography and the Inclusive Economy: A Regional Perspective," Treasury Working Paper Series 01/17, New Zealand Treasury.

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