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Economic impact of migration flows following the 2004 EU enlargement process - A model based analysis

Author

Listed:
  • Francesca D'Auria
  • Kieran Mc Morrow
  • Karl Pichelmann

Abstract

This paper shows that the migration-induced re-allocation of labour resources across countries following the 2004 EU enlargement process has already brought sizeable economic benefits for the enlarged EU. In addition, the simulation results suggest that once the present temporary restrictions on the flow of EU10 workers come to an end and the long-run migration potential of around 3 million is eventually realised, the economic gains may easily match those from a further integration of the EU's goods and capital markets. At the level of the individual "sending" and "receiving" countries, the overall economic impact of migration is essentially determined by the speed of adjustment of labour and capital; by the skill characteristics of the migrant and native populations; and by the actual size of the migration flows.

Suggested Citation

  • Francesca D'Auria & Kieran Mc Morrow & Karl Pichelmann, 2008. "Economic impact of migration flows following the 2004 EU enlargement process - A model based analysis," European Economy - Economic Papers 2008 - 2015 349, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
  • Handle: RePEc:euf:ecopap:0349
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    File URL: http://ec.europa.eu/economy_finance/publications/pages/publication13389_en.pdf
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    References listed on IDEAS

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    4. Ray Barrell & John Fitzgerald & Rebecca Riley, 2010. "EU Enlargement and Migration: Assessing the Macroeconomic Impacts," Journal of Common Market Studies, Wiley Blackwell, vol. 48, pages 373-395, March.
    5. Dora M Iakova, 2007. "The Macroeconomic Effects of Migration from the New European Union Member States to the United Kingdom," IMF Working Papers 07/61, International Monetary Fund.
    6. repec:nsr:niesrd:292 is not listed on IDEAS
    7. Werner Roeger & Janos Varga & Jan in 't Veld, 2008. "Structural Reforms in the EU: A simulation-based analysis using the QUEST model with endogenous growth," European Economy - Economic Papers 2008 - 2015 351, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
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    Citations

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    Cited by:

    1. Harald Badinger & Fritz Breuss, 2011. "The Quantitative Effects of European Post-war Economic Integration," Chapters,in: International Handbook on the Economics of Integration, Volume III, chapter 14 Edward Elgar Publishing.
    2. repec:aes:amfeco:v:46:y:2017:i:19:p:670 is not listed on IDEAS
    3. Fritz Breuss, 2010. "15 Years of Austrian EU Membership," WIFO Monatsberichte (monthly reports), WIFO, vol. 83(2), pages 117-138, February.

    More about this item

    Keywords

    growth; migration; European Union; Economic impact of migration flows following the 2004 EU enlargement process; A model based analysis; D'Auria; Mc Morrow; Pichelmann;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe

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