Article (Scientific journals)
Dutch Disease and The Mitigation Effect of Migration: Evidence from Canadian Provinces
Beine, Michel; Coulombe, Serge; Vermeulen, Wessel
2015In Economic Journal, 152 (589), p. 1574-1615
Peer reviewed
 

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Keywords :
Dutch Disease; Mitigation Effect; Immigration; Natural Resources
Abstract :
[en] This paper evaluates whether immigration can mitigate the Dutch disease effects associated with booms in natural resource sectors. We derive predicted changes in the size of the non-tradable sector from a small general-equilibrium model `a la Obstfeld-Rogoff. Using data for Canadian provinces, we find evidence that aggregate immigration mitigates the increase in the size of the non-tradable sector in booming regions. The mitigation effect is due mostly to interprovincial migration and temporary foreign workers. There is no evidence of such an effect for permanent international immigration. Interprovincial migration also results in a spreading effect of Dutch disease from booming to non-booming provinces. JEL Classi
Disciplines :
International economics
Author, co-author :
Beine, Michel  ;  University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
Coulombe, Serge;  university of Ottawa
Vermeulen, Wessel;  Oxford University > Oxcarre
External co-authors :
yes
Language :
English
Title :
Dutch Disease and The Mitigation Effect of Migration: Evidence from Canadian Provinces
Publication date :
2015
Journal title :
Economic Journal
ISSN :
0013-0133
Publisher :
Blackwell Publishing
Volume :
152
Issue :
589
Pages :
1574-1615
Peer reviewed :
Peer reviewed
Available on ORBilu :
since 08 September 2014

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