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Trade, diaspora and migration to New Zealand

Author

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  • Law, David
  • Bryant, John
  • Genc, Murat

    (Department of Economics, School of Business, University of Otago)

Abstract

NZIER has always had a strong interest in understanding the way in which the New Zealand economy interacts with the rest of the world. We have a long history of producing research into trade liberalisation and globalisation. As the global economy becomes ever more complex, we are now turning our attention to issues such as services, investment, technology transfer and the role of people movement in promoting economic growth and productivity. NZIER is delighted to continue this tradition by funding this important and innovative piece of research by David Law, Murat Gen and John Bryant into the links between trade flows and the movement of people across borders. This research was funded by NZIER in celebration of our 50th Anniversary in 2008. During this very challenging period for the global economy, there has been a tendency for policy makers to implement inwards-focused policies aimed to protecting domestic jobs and promoting domestic economic activity. Such policies are politically popular, but can be economically inefficient and often come at the expense of deeper economic integration between countries. One particularly topical area of policy discussion is the role of immigration in promoting economic growth. New Zealand has long been reliant on immigration to boost its population and to fill gaps in the labour market. And many Kiwis love to travel overseas to gain life and work experience. Given these continual inflows and outflows, it is interesting to consider how people movements might affect the New Zealands exports and imports of goods and services, and thus how immigration policy might be used as a policy lever to boost our international linkages. The paper uses empirical techniques to investigate the links between trade, migration and New Zealands diaspora. It clearly shows that inwards and outwards migration has a positive effect on goods and tourism trade. This suggests that policy makers could design immigration policy with these links in mind in order to maximise the economic potential of migrants. If trade follows migration flows, then an important avenue for boosting New Zealands integration with the global economy may be encouraging migrants from important trading partners.

Suggested Citation

  • Law, David & Bryant, John & Genc, Murat, 2009. "Trade, diaspora and migration to New Zealand," NZIER Working Paper 2009/4, New Zealand Institute of Economic Research.
  • Handle: RePEc:ris:nzierw:2009_004
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    References listed on IDEAS

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    Cited by:

    1. Murat Genc & Masood Gheasi & Peter Nijkamp & Jacques Poot, 2012. "The impact of immigration on international trade: a meta-analysis," Chapters,in: Migration Impact Assessment, chapter 9, pages 301-337 Edward Elgar Publishing.
    2. Etzo, Ivan & Massidda, Carla & Piras, Romano, 2014. "Migration and outbound tourism: Evidence from Italy," Annals of Tourism Research, Elsevier, vol. 48(C), pages 235-249.
    3. repec:bla:worlde:v:40:y:2017:i:11:p:2354-2377 is not listed on IDEAS
    4. Marie Coiffard & Laëtitia Guilhot, 2012. "Migrations internationales : la mobilité des Hommes, facteur d'intégration régionale en Asie Orientale ?," Post-Print halshs-00755102, HAL.
    5. ., 2012. "Migration impact assessment: a state of the art," Chapters,in: Migration Impact Assessment, chapter 1, pages 3-62 Edward Elgar Publishing.
    6. Murat GENC, "undated". "Migration and Tourism Flows to New Zealand," EcoMod2010 259600062, EcoMod.
    7. TOMOHARA Akinori, 2017. "Do Migrant and Business Networks Promote International Royalty Receipts?," Discussion papers 17006, Research Institute of Economy, Trade and Industry (RIETI).
    8. Hatzigeorgiou, Andreas & Lodefalk, Magnus, 2017. "Anti-Migration as a Threat to Internationalization?," Ratio Working Papers 302, The Ratio Institute.
    9. Nijkamp, P. & Poot, H.J., 2012. "Migration impact assessment: A state of the art," Serie Research Memoranda 0009, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    10. Murat Genç & David Law, 2014. "A Gravity Model of Barriers to Trade in New Zealand," Treasury Working Paper Series 14/05, New Zealand Treasury.
    11. O'Connor, Peter & Stephenson, John & Yeabsley, John, 2012. "Grow for it - How population policies can can promote economic growth," NZIER Working Paper 2012/1, New Zealand Institute of Economic Research.
    12. SANDEEP, Kaur, 2015. "Migration And Bilateral Trade Flows: Evidence From India And Oecd Countries," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(2), pages 179-196.
    13. Insel, Aysu & Sungur Cakmak, Nesrin, 2010. "The Impacts of the Turkish Emigrants on Turkish Exports and Imports in Europe," MPRA Paper 22100, University Library of Munich, Germany, revised 30 Apr 2010.
    14. Jacques Poot, 2015. "Cross-border migration and travel: A virtuous relationship," IZA World of Labor, Institute for the Study of Labor (IZA), pages 209-209, November.
    15. Julie Fry, 2014. "Migration and Macroeconomic Performance in New Zealand: Theory and Evidence," Treasury Working Paper Series 14/10, New Zealand Treasury.
    16. Gheasi, M.A.G. & Nijkamp, P., 2011. "Migration, tourism and international trade: Evidence from the UK," Serie Research Memoranda 0029, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    17. Etzo, Ivan & Massidda, Carla & Piras, Romano, 2014. "Migration and Inbound Tourism: An Italian Perspective," MPRA Paper 54252, University Library of Munich, Germany.
    18. Robert E.B. Lucas, 2014. "The migration–trade link in developing economies: a summary and extension of evidence," Chapters,in: International Handbook on Migration and Economic Development, chapter 11, pages 288-326 Edward Elgar Publishing.
    19. Rob Hodgson & Jacques Poot, 2011. "New Zealand Research on the Economic Impacts of Immigration 2005-2010: Synthesis and Research Agenda," CReAM Discussion Paper Series 1104, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
    20. Bakens, J. & Nijkamp, P., 2011. "Lessons from migration impact analysis," Serie Research Memoranda 0022, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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    More about this item

    Keywords

    diaapora; migration; economic growth; New Zealand;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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