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Migration and Economic Growth: a 21st Century Perspective

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Abstract

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.

Suggested Citation

  • Cat Moody, 2006. "Migration and Economic Growth: a 21st Century Perspective," Treasury Working Paper Series 06/02, New Zealand Treasury.
  • Handle: RePEc:nzt:nztwps:06/02
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    File URL: http://www.treasury.govt.nz/publications/research-policy/wp/2006/06-02/twp06-02.pdf
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    1. George J. Borjas, 1995. "The Economic Benefits from Immigration," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 3-22, Spring.
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    3. 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.
    4. Peter Bushnell & Wai Kin Choy, 2001. ""Go West, Young Man, Go West!"?," Treasury Working Paper Series 01/07, New Zealand Treasury.
    5. 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.
    6. Jonathan Coppel & Jean-Christophe Dumont & Ignazio Visco, 2001. "Trends in Immigration and Economic Consequences," OECD Economics Department Working Papers 284, OECD Publishing.
    7. Borjas, George J, 1987. "Self-Selection and the Earnings of Immigrants," American Economic Review, American Economic Association, vol. 77(4), pages 531-553, September.
    8. Winkelmann, Rainer, 1999. "Immigration: The New Zealand Experience," IZA Discussion Papers 61, Institute for the Study of Labor (IZA).
    9. 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.
    10. 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;European Society for Population Economics, vol. 16(1), pages 161-175, February.
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    14. 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.
    15. John Bryant, 2003. "Demographic Change and New Zealand’s Economic Growth," Treasury Working Paper Series 03/04, New Zealand Treasury.
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    Cited by:

    1. Geoffrey T. F. Brooke & Anthony M. Endres & Alan J. Rogers, 2016. "The Economists and New Zealand Population: Problems and Policies 1900–1980s," Working Papers 2016-08, Auckland University of Technology, Department of Economics.
    2. Imran SARIHASAN, 2016. "Immigration Growth Tendencies In Oecd Countries," SEA - Practical Application of Science, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 12, pages 547-553, December.

    More about this item

    Keywords

    Migration; immigration; emigration; economic growth; growth accounting framework; New Zealand;

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O49 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Other
    • O56 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Oceania

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