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Trade, diaspora and migration to New Zealand

Author

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  • David Law

    (New Zealand Institute of Economic Research)

  • Murat Genc
  • John Bryant

Abstract

NZIER has always had a strong interest in understanding the way in which the New Zealand economy interacts with the rest of the world. We have a long history of producing research into trade liberalisation and globalisation. As the global economy becomes ever more complex, we are now turning our attention to issues such as services, investment, technology transfer and the role of people movement in promoting economic growth and productivity. NZIER is delighted to continue this tradition by funding this important and innovative piece of research by David Law, Murat Gen and John Bryant into the links between trade flows and the movement of people across borders. This research was funded by NZIER in celebration of our 50th Anniversary in 2008. During this very challenging period for the global economy, there has been a tendency for policy makers to implement inwards-focused policies aimed to protecting domestic jobs and promoting domestic economic activity. Such policies are politically popular, but can be economically inefficient and often come at the expense of deeper economic integration between countries. One particularly topical area of policy discussion is the role of immigration in promoting economic growth. New Zealand has long been reliant on immigration to boost its population and to fill gaps in the labour market. And many Kiwis love to travel overseas to gain life and work experience. Given these continual inflows and outflows, it is interesting to consider how people movements might affect the New Zealands exports and imports of goods and services, and thus how immigration policy might be used as a policy lever to boost our international linkages. The paper uses empirical techniques to investigate the links between trade, migration and New Zealands diaspora. It clearly shows that inwards and outwards migration has a positive effect on goods and tourism trade. This suggests that policy makers could design immigration policy with these links in mind in order to maximise the economic potential of migrants. If trade follows migration flows, then an important avenue for boosting New Zealands integration with the global economy may be encouraging migrants from important trading partners.

Suggested Citation

  • David Law & Murat Genc & John Bryant, 2009. "Trade, diaspora and migration to New Zealand," Trade Working Papers 23005, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:tradew:23005
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2011. "The impact of immigration on international trade: a meta-analysis," Norface Discussion Paper Series 2011020, Norface Research Programme on Migration, Department of Economics, University College London.
    2. Etzo, Ivan & Massidda, Carla & Piras, Romano, 2014. "Migration and outbound tourism: Evidence from Italy," Annals of Tourism Research, Elsevier, vol. 48(C), pages 235-249.
    3. Robert E.B. Lucas, 2014. "The migration–trade link in developing economies: a summary and extension of evidence," Chapters,in: International Handbook on Migration and Economic Development, chapter 11, pages 288-326 Edward Elgar Publishing.
    4. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    5. Marie Coiffard & Laëtitia Guilhot, 2012. "Migrations internationales : la mobilité des Hommes, facteur d'intégration régionale en Asie Orientale ?," Post-Print halshs-00755102, HAL.
    6. ., 2012. "Migration impact assessment: a state of the art," Chapters,in: Migration Impact Assessment, chapter 1, pages 3-62 Edward Elgar Publishing.
    7. Murat GENC, "undated". "Migration and Tourism Flows to New Zealand," EcoMod2010 259600062, EcoMod.
    8. Jacques Poot, 2015. "Cross-border migration and travel: A virtuous relationship," IZA World of Labor, Institute for the Study of Labor (IZA), pages 209-209.
    9. Julie Fry, 2014. "Migration and Macroeconomic Performance in New Zealand: Theory and Evidence," Treasury Working Paper Series 14/10, New Zealand Treasury.
    10. Christian Dustmann & Albrecht Glitz & Tommaso Frattini, 2008. "The labour market impact of immigration," Oxford Review of Economic Policy, Oxford University Press, pages 478-495.
    11. Gheasi, M.A.G. & Nijkamp, P., 2011. "Migration, tourism and international trade: Evidence from the UK," Serie Research Memoranda 0029, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    12. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters,in: Migration Impact Assessment, chapter 9, pages 301-337 Edward Elgar Publishing.
    13. Bakens, J. & Nijkamp, P., 2011. "Lessons from migration impact analysis," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    14. Christopher R. Parsons & L. Alan Winters, 2014. "International migration, trade and aid: a survey," Chapters,in: International Handbook on Migration and Economic Development, chapter 4, pages 65-112 Edward Elgar Publishing.
    15. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    16. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters,in: Migration Impact Assessment, chapter 9, pages 301-337 Edward Elgar Publishing.
    17. Etzo, Ivan & Massidda, Carla & Piras, Romano, 2014. "Migration and Inbound Tourism: An Italian Perspective," MPRA Paper 54252, University Library of Munich, Germany.
    18. O'Connor, Peter & Stephenson, John & Yeabsley, John, 2012. "Grow for it - How population policies can can promote economic growth," NZIER Working Paper 2012/1, New Zealand Institute of Economic Research.
    19. Hayakawa, Kazunobu & Kim, Han-Sung & Yoshimi, Taiyo, 2017. "Exchange rate and utilization of free trade agreements: Focus on rules of origin," Journal of International Money and Finance, Elsevier, pages 93-108.
    20. SANDEEP, Kaur, 2015. "Migration And Bilateral Trade Flows: Evidence From India And Oecd Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 179-196.
    21. Insel, Aysu & Sungur Cakmak, Nesrin, 2010. "The Impacts of the Turkish Emigrants on Turkish Exports and Imports in Europe," MPRA Paper 22100, University Library of Munich, Germany, revised 30 Apr 2010.

    More about this item

    Keywords

    Diaspora; trade; Migration; New Zealand; economic growth;

    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
    • F10 - International Economics - - Trade - - - General

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