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Relaxing the Restrictions on the Temporary Movements of Natural Persons: A Simulation Analysis

  • Walmsley, Terri Louise
  • Winters, L. Alan

While the liberalization of trade has been at the forefront of the global agenda for many decades, the movement of natural persons remains heavily guarded. Nevertheless, restrictions on the movement of natural persons across regions impose a cost on developing and developed economies that far exceeds that of trade restrictions on goods. This Paper uses a global CGE model to investigate the extent of these costs, by examining the effects of an increase in developed countries’ quotas on both skilled and unskilled temporary labour equivalent to 3% of their labour forces. The results confirm that restrictions on the movement of natural persons impose significant costs on nearly all countries (over $150 billion in all), and that those on unskilled labour are more burdensome than those on skilled labour.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3719.

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Date of creation: Jan 2003
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Handle: RePEc:cpr:ceprdp:3719
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  1. George J. Borjas, 1994. "The Economic Benefits from Immigration," NBER Working Papers 4955, National Bureau of Economic Research, Inc.
  2. Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
  3. Hamilton, Bob & Whalley, John, 1984. "Efficiency and distributional implications of global restrictions on labour mobility : Calculations and policy implications," Journal of Development Economics, Elsevier, vol. 14(1), pages 61-75.
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