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Migration and Economic Growth: a 21st Century Perspective

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    While there is extensive literature on the determinants of migration and its microeconomic effects, the New Zealand theoretical or empirical literature specifically examining the effects of migration on economic growth is not as comprehensive. In New Zealand there has been an implicit underlying assumption that immigration is good for economic growth, as evidenced by the attempted use of immigration to resolve particular labour market problems. This paper uses the growth accounting policy framework to discuss the mechanisms through which immigration can impact economic growth. It reviews the contemporary literature with a view to identifying how immigration policy may be adjusted to improve the potential returns to growth from immigration in New Zealand.

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    Paper provided by New Zealand Treasury in its series Treasury Working Paper Series with number 06/02.

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    Length: 46
    Date of creation: Mar 2006
    Date of revision:
    Handle: RePEc:nzt:nztwps:06/02
    Contact details of provider: Postal: New Zealand Treasury, PO Box 3724, Wellington, New Zealand
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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. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003. "The Economic Impact of Migration: A Survey," School of Economics Discussion Papers 0103, School of Economics, University of Surrey.
    3. Peter Bushnell & Wai Kin Choy, 2001. ""Go West, Young Man, Go West!"?," Treasury Working Paper Series 01/07, New Zealand Treasury.
    4. Cobb-Clark, D.A. & Connolly, M.D., 1996. "The Worldwide Market for Skilled Migrants: Can Australia Compete?," CEPR Discussion Papers 341, Centre for Economic Policy Research, Research School of Economics, Australian National University.
    5. John Bryant & Murat Genç & David Law, 2005. "Trade and Migration to New Zealand," ERSA conference papers ersa05p192, European Regional Science Association.
    6. Cobb-Clark, Deborah A, 2000. "Do Selection Criteria Make a Difference? Visa Category and the Labour Market Status of Immigrants to Australia," The Economic Record, The Economic Society of Australia, vol. 76(232), pages 15-31, March.
    7. Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2007. "The Immigration Surplus Revisited In A General Equilibrium Model With Endogenous Growth," Journal of Regional Science, Wiley Blackwell, vol. 47(3), pages 569-601.
    8. John Bryant, 2003. "Demographic Change and New Zealand’s Economic Growth," Treasury Working Paper Series 03/04, New Zealand Treasury.
    9. Stuart J. Wilson, 2003. "A Dynamic General Equilibrium Analysis of Migration and Capital Formation: The Case of Canada," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 6(2), pages 455-481, April.
    10. Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
    11. Reichlin, Pietro & Rustichini, Aldo, 1998. "Diverging patterns with endogenous labor migration," Journal of Economic Dynamics and Control, Elsevier, vol. 22(5), pages 703-728, May.
    12. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-53, September.
    13. Rebecca M. Blank, 2000. "Distinguished Lecture on Economics in Government: Fighting Poverty: Lessons from Recent U.S. History," Journal of Economic Perspectives, American Economic Association, vol. 14(2), pages 3-19, Spring.
    14. Jonathan Coppel & Jean-Christophe Dumont & Ignazio Visco, 2001. "Trends in Immigration and Economic Consequences," OECD Economics Department Working Papers 284, OECD Publishing.
    15. Kemnitz, Alexander, 2001. "Endogenous growth and the gains from immigration," Economics Letters, Elsevier, vol. 72(2), pages 215-218, August.
    16. Manon Domingues Dos Santos & Fabien Postel-Vinay, 2003. "Migration as a source of growth: The perspective of a developing country," Journal of Population Economics, Springer, vol. 16(1), pages 161-175, 02.
    17. Winkelmann, Rainer, 1999. "Immigration: The New Zealand Experience," IZA Discussion Papers 61, Institute for the Study of Labor (IZA).
    18. Paul Romer, 1989. "Endogenous Technological Change," NBER Working Papers 3210, National Bureau of Economic Research, Inc.
    19. Lucas Bretschger, 2001. "Labor Supply, Migration, and Long-Term Development," Open Economies Review, Springer, vol. 12(1), pages 5-27, January.
    20. Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
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