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Gains from the Liberalization of Temporary Migration

Author

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  • Syud Amer Ahmed

    (Syud Amer Ahmed, Center for Global Trade Analysis, Purdue University, 403 W. State St, West Lafayette IN 47907. Email: saahmed@purdue.edu)

  • Terrie L. Walmsley

    (Terrie L. Walmsley, Center for Global Trade Analysis, Purdue University, 403 W. State St, West Lafayette IN 47907. Email: twalmsle@purdue.edu)

Abstract

We examine the potential gains for India from increased temporary migration of skilled workers from India to major recipient-countries of Indian migrant workers, in light of potential productivity gains from return migration. The article uses the GMig2 Global Bilateral Labour Migration Model and its supporting database to explore the impact on the Indian economy of liberalizing the temporary movement of skilled workers; and compares the welfare effects of this liberalization to those from domestic services sector liberalization in India. The results show that the welfare of Indian workers remaining behind in India improves as a result of temporary skilled labour migration. Although there is a welfare loss arising from out-migration, this is outweighed by the substantial increase in remittances back to India. There is also a clear improvement in total real income from the increased productivity brought back to India by the returning workers.

Suggested Citation

  • Syud Amer Ahmed & Terrie L. Walmsley, 2009. "Gains from the Liberalization of Temporary Migration," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 10(1), pages 61-80, January.
    • Handle: RePEc:sae:soueco:v:10:y:2009:i:1:p:61-80
    DOI: 10.1177/139156140901000103
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    References listed on IDEAS

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    1. Philippa Dee & Kevin Hanslow & Tien Phamduc, 2013. "Measuring the Cost of Barriers to Trade in Services," World Scientific Book Chapters, in: Services Trade Reform Making Sense of It, chapter 5, pages 97-123, World Scientific Publishing Co. Pte. Ltd..
    2. Walmsley, Terrie L. & Winters, L. Alan, 2005. "Relaxing the Restrictions on the Temporary Movement of Natural Persons: A Simulation Analysis," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 20, pages 688-726.
    3. Walmsley, Terrie L. & Winters, L. Alan & Ahmed, S. Amer & Parsons, Christopher R., 2005. "Measuring the Impact of the Movement of Labour Using a Model of Bilateral Migration Flows," Conference papers 331440, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
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    Cited by:

    1. Mohammad Salahuddin & Jeff Gow, 2015. "The relationship between economic growth and remittances in the presence of cross-sectional dependence," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(1), pages 207-221, January-M.
    2. Mohd. Aslam Bhat & Tareak A. Rather, 2016. "International Worker Migration and Remittances in South Asia: A Landscape of India’s Emerging Scenario," The Indian Journal of Labour Economics, Springer;The Indian Society of Labour Economics (ISLE), vol. 59(3), pages 397-417, September.
    3. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    4. Wilson, E. J. & Jayanthakumaran, K. & Verma, R., 2012. "Demographics, Labor Mobility, and Productivity," ADBI Working Papers 387, Asian Development Bank Institute.
    5. Biru Paul & Md. Uddin & Abdullah Noman, 2011. "Remittances and output in Bangladesh: an ARDL bounds testing approach to cointegration," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 58(2), pages 229-242, June.

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    More about this item

    Keywords

    JEL: C68; JEL: F22; JEL: F24; GATS; Mode 4; Skilled Migration; India; CGE Modelling;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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