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Illegal migration and economic growth: simulation analysis in an international context

Author

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  • Cheuk Yin Ho

    (Department of Economics and Finance, City University of Hong Kong)

Abstract

This paper calibrates the dynamic illegal migration model studied by Hazari and Sgro (2003) to eight countries. We find that if illegal migrants and domestic labor are perfect substitutes in production, the presence of illegal migrants lowers domestic welfare between 0.09% and 2.93% among eight countries. Moreover, we show that there is a tradeoff between the long-run domestic wage rate and rental rate of capital from receiving illegal migrants.

Suggested Citation

  • Cheuk Yin Ho, 2007. "Illegal migration and economic growth: simulation analysis in an international context," Economics Bulletin, AccessEcon, vol. 6(41), pages 1-13.
    • Handle: RePEc:ebl:ecbull:eb-07f20008
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    References listed on IDEAS

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    1. Juan C. Conesa & Timothy J. Kehoe, 2017. "Productivity, taxes, and hours worked in Spain: 1970–2015," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 8(3), pages 201-223, August.
    2. Hazari, Bharat R. & Sgro, Pasquale M., 2003. "The simple analytics of optimal growth with illegal migrants," Journal of Economic Dynamics and Control, Elsevier, vol. 28(1), pages 141-151, October.
    3. Stephen Murchison & Andrew Rennison & Zhenhua Zhu, 2004. "A Structural Small Open-Economy Model for Canada," Staff Working Papers 04-4, Bank of Canada.
    4. Kapetanios, G. & Pagan, A. & Scott, A., 2007. "Making a match: Combining theory and evidence in policy-oriented macroeconomic modeling," Journal of Econometrics, Elsevier, vol. 136(2), pages 565-594, February.
    5. Moy, Hon Man & Yip, Chong K., 2006. "The simple analytics of optimal growth with illegal migrants: A clarification," Journal of Economic Dynamics and Control, Elsevier, vol. 30(12), pages 2469-2475, December.
    6. World Bank, 2006. "World Development Indicators 2006," World Bank Publications - Books, The World Bank Group, number 8151.
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    Cited by:

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    More about this item

    Keywords

    calibration;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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