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Economic Repercussions of Opening the Border to Labour Movements between North and South Cyprus


  • Nuru Giritli

    () (Department of Economics, Eastern Mediterranean University, Mersin 10, Turkey)

  • Glenn P. Jenkins

    () (Department of Economics, Queen's University, Canada, Eastern Mediterranean University, Mersin 10, Turkey)

  • Sevin Ugural

    () (Department of Economics, Eastern Mediterranean University, Mersin 10, Turkey)


Policy changes in North Cyprus represent the first phase of integration of the labour markets of North and South Cyprus. Employment of construction workers from the North by South Cyprus has reduced the supply of workers in North Cyprus, while increasing individual incomes. To study the effects on economic well-being and wealth allocation in North Cyprus, a computable general equilibrium (CGE) model of the economy is employed. Moves to maintain labour market stability by issuing additional permits to workers entering North Cyprus from Turkey are also studied. This policy has significantly benefited all stakeholders in North Cyprus.

Suggested Citation

  • Nuru Giritli & Glenn P. Jenkins & Sevin Ugural, 2014. "Economic Repercussions of Opening the Border to Labour Movements between North and South Cyprus," Development Discussion Papers 2014-01, JDI Executive Programs.
  • Handle: RePEc:qed:dpaper:245

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    References listed on IDEAS

    1. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-1051, September.
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    More about this item


    Cyprus; Labour Market Integration; General Equilibrium Analysis; Commuter Workers;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D57 - Microeconomics - - General Equilibrium and Disequilibrium - - - Input-Output Tables and Analysis
    • J08 - Labor and Demographic Economics - - General - - - Labor Economics Policies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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