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Immigration and economic growth in the OECD countries 1986-2006

Author

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  • Ekrame Boubtane

    () (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique, CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne)

  • Jean-Christophe Dumont

    () (OECD - Organisation for Economic Cooperation and Development)

  • Christophe Rault

    () (LEO - Laboratoire d'économie d'Orleans - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique)

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-born and foreign-born 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 deal with the risk of an endogeneity bias of the migration variables. Two important findings emerge from our analysis. First, there exists a positive impact of migrants' human capital on economic growth. And second, the contribution of immigrants to human capital accumulation tends to dominate the mechanical dilution effect while the net effect is fairly small. This conclusion holds even in countries with highly selective migration policies.

Suggested Citation

  • Ekrame Boubtane & Jean-Christophe Dumont & Christophe Rault, 2013. "Immigration and economic growth in the OECD countries 1986-2006," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00800617, HAL.
  • Handle: RePEc:hal:cesptp:halshs-00800617
    Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00800617v2
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    Cited by:

    1. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2016. "Immigration Policy and Macroeconomic Performance in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 279-308.
    2. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2016. "Immigration Policy and Macroeconomic Performance in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 279-308.
    3. repec:mje:mjejnl:v:12:y:2017:i:3:p:31-42 is not listed on IDEAS
    4. repec:mje:mjejnl:v:13:y:2017:i:3:p:31-42 is not listed on IDEAS
    5. repec:oup:ecpoli:v:32:y:2017:i:92:p:651-705. is not listed on IDEAS
    6. Swati Dhingra & Hanwei Huang & Gianmarco Ottaviano & João Paulo Pessoa & Thomas Sampson & John Van Reenen, 2017. "The costs and benefits of leaving the EU: trade effects," Economic Policy, CEPR;CES;MSH, vol. 32(92), pages 651-705.
    7. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2016. "Immigration Policy and Macroeconomic Performance in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 279-308.
    8. Marcus H. Böhme & Sarah Kups, 2017. "The economic effects of labour immigration in developing countries: A literature review," OECD Development Centre Working Papers 335, OECD Publishing.
    9. International Monetary Fund, 2016. "United Kingdom; Selected Issues," IMF Staff Country Reports 16/169, International Monetary Fund.
    10. Jacob Funk Kirkegaard, 2015. "Toward a European Migration and Mobility Union," Policy Briefs PB15-23, Peterson Institute for International Economics.
    11. Torben M. Andersen & Giuseppe Bertola & John Driffill & Clemens Fuest & Harold James & Jan-Egbert Sturm & Branko Uroševic, 2017. "Chapter 4: Immigration and the Refugee Crisis – Can Europe Rise to the Challenge?," EEAG Report on the European Economy, CESifo Group Munich, vol. 0, pages 82-101, March.
    12. Mathias Czaika & Christopher R. Parsons, 2017. "The Gravity of High-Skilled Migration Policies," Demography, Springer;Population Association of America (PAA), vol. 54(2), pages 603-630, April.
    13. Christie Smith & Christoph Thoenissen, 2018. "Migration and Business Cycle Dynamics," Working Papers 2018006, The University of Sheffield, Department of Economics.
    14. Iskra Beleva, 2016. "The impact of emigration on the socio-economic development of Bulgaria," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 3-22,23-41.
    15. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2017. "International Migration and Regional Housing Markets: Evidence from France," EconomiX Working Papers 2017-28, University of Paris Nanterre, EconomiX.
    16. Joan Muysken & Thomas Ziesemer, 2014. "The Effect of Immigration on Economic Growth in an Ageing Economy," Bulletin of Applied Economics, Risk Market Journals, vol. 1(1), pages 35-63.
    17. repec:hal:journl:halshs-01162441 is not listed on IDEAS
    18. repec:ces:eeagre:v::y:2017:i::p:01-110 is not listed on IDEAS
    19. Dmitry Burakov, 2017. "Oil Prices, Economic Growth and Emigration: An Empirical Study of Transmission Channel," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 90-98.
    20. Christie Smith & Christoph Thoenissen, 2018. "Migration and business cycle dynamics," CAMA Working Papers 2018-20, Centre for Applied Macroeconomic Analysis, Crawford School of Public Policy, The Australian National University.

    More about this item

    Keywords

    immigration; growth; human capital; Generalized Methods of Moments;

    JEL classification:

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

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