Reference : Dutch Disease and The Mitigation Effect of Migration: Evidence from Canadian Provinces
Scientific journals : Article
Business & economic sciences : International economics
http://hdl.handle.net/10993/17906
Dutch Disease and The Mitigation Effect of Migration: Evidence from Canadian Provinces
English
Beine, Michel mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
Coulombe, Serge mailto [university of Ottawa]
Vermeulen, Wessel mailto [Oxford University > Oxcarre]
2015
Economic Journal
Blackwell Publishing
152
589
1574-1615
Yes (verified by ORBilu)
International
0013-0133
[en] Dutch Disease ; Mitigation Effect ; Immigration ; Natural Resources
[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
Researchers ; Professionals ; Students ; General public ; Others
http://hdl.handle.net/10993/17906

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