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A Dynamic General Equilibrium Analysis of Migration and Capital Formation: The Case of Canada


  • Stuart J. Wilson

    (University of Regina)


A dynamic general equilibrium model is constructed to examine the impact of mass immigration on capital accumulation in life-cycle economies. The model is calibrated to match Canadian demographic characteristics over 1861-1913. This was a period when Canada experienced a dramatic shift in migration patterns, with increasing immigration flows, and a surge in domestic savings and capital inflows. Model results suggest that up to three-quarters of the increase in the capital formation rate and the foreign capital inflow rate, and all of the increase in the domestic savings rate, in the Canadian economy over 1899-1911, can be attributed to the dramatic inflow of migrants over this period. (Copyright: Elsevier)

Suggested Citation

  • Stuart J. Wilson, 2003. "A Dynamic General Equilibrium Analysis of Migration and Capital Formation: The Case of Canada," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(2), pages 455-481, April.
  • Handle: RePEc:red:issued:v:6:y:2003:i:2:p:455-481
    DOI: 10.1016/S1094-2025(03)00006-1

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    References listed on IDEAS

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    Cited by:

    1. Douglas Gollin & Fabian Lange, 2013. "Equipping immigrants: migration flows and capital movements in small open economies," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 149(4), pages 749-777, December.
    2. Douglas Gollin & Eric Van Dusen & Harvey Blackburn, 2008. "Animal genetic resource trade flows: Economic assessment," Center for Development Economics 2008-02, Department of Economics, Williams College.
    3. Boldrin, Michele & Montes, Ana, 2015. "Modeling an immigration shock," European Economic Review, Elsevier, vol. 74(C), pages 190-206.
    4. Lange, Fabian & Gollin, Douglas, 2007. "Equipping Immigrants: Migration Flows and Capital Movements," IZA Discussion Papers 2745, Institute for the Study of Labor (IZA).
    5. Hugo Benítez-Silva & Eva Cárceles-Poveda & Selçuk Eren, 2011. "Effects of Legal and Unauthorized Immigration on the U.S. Social Security System," Working Papers wp250, University of Michigan, Michigan Retirement Research Center.
    6. Irena Mikolajun & Jean-Marie Viaene, 2015. "Trade, Factor Mobility and the Extent of Economic Integration: Theory and Evidence," CESifo Working Paper Series 5481, CESifo Group Munich.
    7. Şule Akkoyunlu, 2012. "Intervening Opportunities and Competing Migrants in Turkish migration to Germany, 1969-2008," Migration Letters, Transnational Press London, UK, vol. 9(2), pages 155-175, May.
    8. Cat Moody, 2006. "Migration and Economic Growth: a 21st Century Perspective," Treasury Working Paper Series 06/02, New Zealand Treasury.
    9. Irena Mikolajun & Jean-Marie Viaene, 2015. "Trade, Factor Mobility and the Extent of Economic Integration: Theory and Evidence," Tinbergen Institute Discussion Papers 15-096/VI, Tinbergen Institute.
    10. Chu, Kam Hon, 2010. "Bank mergers, branch networks and economic growth: Theory and evidence from Canada, 1889-1926," Journal of Macroeconomics, Elsevier, vol. 32(1), pages 265-283, March.

    More about this item


    migration; capital formation; saving; life cycle;

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • N11 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: Pre-1913
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models


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