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

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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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  • Peter Bushnell & Wai Kin Choy, 2001. ""Go West, Young Man, Go West!"?," Treasury Working Paper Series 01/07, New Zealand Treasury.
    • Handle: RePEc:nzt:nztwps:01/07
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    File URL: https://treasury.govt.nz/sites/default/files/2007-10/twp01-07.pdf
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    1. 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 313-329, December.
    2. Winkelmann, Rainer, 2000. "Immigration Policies and their Impact: The Case of New Zealand and Australia," IZA Discussion Papers 169, Institute of Labor Economics (IZA).
    3. anonymous, 1986. "Migration and the New Zealand labour market," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 49, july.
    4. Peter Brosnan & Jacques Poot, 1987. "Modelling the Determinants of Trans‐Tasman Migration after World War II," The Economic Record, The Economic Society of Australia, vol. 63(4), pages 313-329, December.
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    Cited by:

    1. Wai Kin Choy & David C Mare & Peter Mawson, 2002. "Modelling Regional Labour Market Adjustment in New Zealand," Treasury Working Paper Series 02/01, New Zealand Treasury.
    2. Irina BONCEA, 2015. "Romania’S Medical Sector: Between Brain Drain And Brain Waste," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 7, pages 109-112, April.
    3. Omoniyi B Alimi & David C Maré & Jacques Poot, 2020. "The effects of immigration and skills on urban income inequality in New Zealand: two decomposition approaches," RF Berlin - CReAM Discussion Paper Series 2023, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    4. Mr. Kenichi Ueda, 2002. "Implications of Migrationon Income and Welfare of Nationals," IMF Working Papers 2002/215, International Monetary Fund.
    5. Siti Fatimah & Lilis Surienty, 2013. "You are Kind, you are Smart, you are Important: the Linkages between Individual Factors and the Intention to Repatriate among Malaysian Self-Initiated Expatriates," Journal of Social and Development Sciences, AMH International, vol. 4(11), pages 498-507.
    6. 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.
    7. P. Giannoccolo, 2004. "The Brain Drain. A Survey of the Literature," Working Papers 526, Dipartimento Scienze Economiche, Universita' di Bologna.
    8. Hayden Glass & Wai Kin Choy, 2001. "Brain Drain or Brain Exchange?," Treasury Working Paper Series 01/22, New Zealand Treasury.
    9. Jacques Poot, 2009. "Trans-Tasman Migration, Transnationalism and Economic Development in Australasia," Working Papers 09_05, Motu Economic and Public Policy Research.
    10. Adam Creighton, 2006. "Labour Mobility And Trans‐Tasman Currency Union," Australian Economic Papers, Wiley Blackwell, vol. 45(1), pages 38-56, March.
    11. The Treasury, 2001. "Geography and the Inclusive Economy: A Regional Perspective," Treasury Working Paper Series 01/17, New Zealand Treasury.
    12. Omoniyi B. Alimi & David C. Mare & Jacques Poot, 2022. "Immigration, skills and changing urban income inequality in New Zealand," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 25(1), pages 81-109.
    13. Alimi, Omoniyi & Maré, David C. & Poot, Jacques, 2018. "International Migration and the Distribution of Income in New Zealand Metropolitan and Non-Metropolitan Areas," IZA Discussion Papers 11959, Institute of Labor Economics (IZA).
    14. Cat Moody, 2006. "Migration and Economic Growth: a 21st Century Perspective," Treasury Working Paper Series 06/02, New Zealand Treasury.
    15. 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.

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    More about this item

    Keywords

    international migration; brain drain;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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