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Immigration and Economic Growth in the OECD Countries 1986-2006

Author

Listed:
  • C. RAULT
  • Jean-Christophe DUMONT
  • Ekrame BOUBTANE

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

Abstract

This paper offers a reappraisal of the impact of migration on economic growth for 22 OECD countries between 1986-2006 and relies on a unique data set we compiled that allows us to distinguish net migration of the native - and foreign - born populations by skill level. Specifically, after introducing migration in an augmented Solow-Swan model, we estimate a dynamic panel model using a system of generalized method of moments (SYS-GMM) to address the risk of endogeneity bias in the migration variables. Two important findings emerge from our analysis. First, there exists a positive impact of migrants' human capital on GDP per capita, and second, a permanent increase in migration flows has a positive effect on GDP per worker. Moreover, the growth impact of immigration is high even in countries that have non-selective migration policies.

Suggested Citation

  • C. RAULT & Jean-Christophe DUMONT & Ekrame BOUBTANE, 2016. "Immigration and Economic Growth in the OECD Countries 1986-2006," Working Papers 201601, CERDI.
  • Handle: RePEc:cdi:wpaper:1774
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    File URL: http://publi.cerdi.org/ed/2016/2016.01.pdf
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    More about this item

    Keywords

    Immigration ; Growth ; Human capital ; Generalized Methods of Moments;
    All these keywords.

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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