IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/332608.html
   My bibliography  Save this paper

Regionally targeted migration policy as an instrument for regional development: a general equilibrium assessment

Author

Listed:
  • Tran, Nhi
  • Roos, Louise
  • Giesecke, James
  • Madden, John

Abstract

Preferential treatment in the granting of certain classes of visas to migrants agreeing to work in non-metropolitan regions has become an important instrument of the Australian federal government’s regional development policy. This paper undertakes an analysis of the efficacy of this policy with a dynamic multiregional computable general equilibrium (CGE) model, TERM. A version of the model is constructed with 15 regions, 7 of them being non-metropolitan. In order to capture the indirect effects on regional labour supply of this policy, it was necessary to introduce into TERM a labour supply specification which provides a detailed treatment of labour choice behaviour of workers identified by skill class, employment status, industry, region, age group and visa status. The model is parameterised to capture: the underlying transitions between labour categories (such as those between visa categories); and worker preferences regarding choices between occupations and regions of employment. Eight CGE simulations are undertaken, seven in which non-metropolitan regions are targeted in turn by a 1000-person increase in their intake of migrants under the specified visa classes. The eighth simulation involves an untargeted 1000-person increase in the visa intake in which migrants are allowed to settle across regions in accordance with historical patterns for those visa classes. The results show that regional targeting does generate improvements for the targeted regions in variables which are often used as regional development indicators, such as employment and real GDP. However, the effects on a targeted region’s population are considerably below the thousand persons taking up residence under the new visas. Right from the start labour-market displacement effects occur due principally to the boost to the region’s labour supply depressing the regional wage rate which in turn causes increases in net interregional emigration of existing workers. In the first year of the...

Suggested Citation

  • Tran, Nhi & Roos, Louise & Giesecke, James & Madden, John, 2015. "Regionally targeted migration policy as an instrument for regional development: a general equilibrium assessment," Conference papers 332608, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332608
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/332608/files/7469.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Horridge, Mark & Madden, John & Wittwer, Glyn, 2005. "The impact of the 2002-2003 drought on Australia," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 285-308, April.
    2. Mark Horridge, 2011. "The TERM model and its data base," Centre of Policy Studies/IMPACT Centre Working Papers g-219, Victoria University, Centre of Policy Studies/IMPACT Centre.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Francois J. Stofberg & Jan H. van Heerden, 2015. "The Short Term Economic Impact of Levying E-Tolls on Industries," Working Papers 201527, University of Pretoria, Department of Economics.
    2. Francois Jacobus Stofberg & Jan Van Heerden, 2016. "The Short-Term Economic Impact of Levying E-Tolls on Industries," South African Journal of Economics, Economic Society of South Africa, vol. 84(4), pages 574-593, December.
    3. Diniz, Tiago & Ferreira-Filho, Joaquim Bento & Horridge, Mark, 2018. "Economic and regional impacts of investments in electricity generation in Brazil," Conference papers 332933, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    4. de Souza Ferreira Filho, Joaquim Bento & Bacha, Carlos José Caetano & Regazzini, Leonardo Coviello, 2021. "Tax exemption in Brazil in 2009: why vehicles and not agriculture? An interregional general equilibrium analysis," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), December.
    5. Masato Yamazaki & Atsushi Koike & Yoshinori Sone, 2018. "A Heuristic Approach to the Estimation of Key Parameters for a Monthly, Recursive, Dynamic CGE Model," Economics of Disasters and Climate Change, Springer, vol. 2(3), pages 283-301, October.
    6. Bohlmann, H.R. & Horridge, J.M. & Inglesi-Lotz, R. & Roos, E.L. & Stander, L., 2019. "Regional employment and economic growth effects of South Africa’s transition to low-carbon energy supply mix," Energy Policy, Elsevier, vol. 128(C), pages 830-837.
    7. Ashkan Masouman & Charles Harvie, 2020. "Forecasting, impact analysis and uncertainty propagation in regional integrated models: A case study of Australia," Environment and Planning B, , vol. 47(1), pages 65-83, January.
    8. Verikios, George & Zhang, Xiao-guang, 2015. "Reform of Australian urban transport: A CGE-microsimulation analysis of the effects on income distribution," Economic Modelling, Elsevier, vol. 44(C), pages 7-17.
    9. Arief Anshory Yusuf & Mark Horridge & Edimon Ginting & Priasto Aji, 2014. "Reducing disparity through a regions-focused development: A modeling approach of assessing the Indonesian MP3EI," Working Papers in Economics and Development Studies (WoPEDS) 201402, Department of Economics, Padjadjaran University, revised Feb 2014.
    10. Wittwer, Glyn & Banerjee, Onil, 2015. "Investing in irrigation development in North West Queensland, Australia," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 59(2), April.
    11. Jendrzejewski, Błażej, 2020. "Bioeconomic modelling – An application of environmentally adjusted economic accounts and the computable general equilibrium model," Land Use Policy, Elsevier, vol. 92(C).
    12. Chokri Thabet, 2014. "Water Policy and Poverty Reduction in Rural Area: A Comparative Economy Wide Analysis for Morocco and Tunisia," Working Papers 860, Economic Research Forum, revised Nov 2014.
    13. Channing Arndt & Karl Pauw & James Thurlow, 2016. "The Economy-wide Impacts and Risks of Malawi's Farm Input Subsidy Program," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(3), pages 962-980.
    14. James Giesecke, 2008. "A Top-down Framework for Regional Historical Analysis," Spatial Economic Analysis, Taylor & Francis Journals, vol. 3(1), pages 45-87.
    15. Sarris, Alexander, 2009. "Evolving Structure of World Agricultural Trade and Requirements for New World Trade Rules," Conference papers 331831, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Arief Anshory Yusuf, 2015. "Energy Efficiency Priority for Indonesia: A General Equilibrium Analysis," Working Papers in Economics and Development Studies (WoPEDS) 201506, Department of Economics, Padjadjaran University, revised Dec 2015.
    17. George Verikios & Xiao-guang Zhang, 2016. "Structural change and income distribution: the case of Australian telecommunications," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 21(4), pages 549-570, October.
    18. Camila Callegari & Tarik Tanure & Ana Carolina Oliveira Fiorini & Eduardo Haddad & Edson Domingues & Aline Magalhães & Fernando Perobelli & Alexandre Porsse & André F. P. Lucena & Eveline Vasquez-Arro, 2023. "The Role of Cities: Linking Integrated Assessment Models to Urban Solutions," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    19. Ejaz Qureshi, M. & Hanjra, Munir A. & Ward, John, 2013. "Impact of water scarcity in Australia on global food security in an era of climate change," Food Policy, Elsevier, vol. 38(C), pages 136-145.
    20. Stofberg, F.J. & van Heerden, J.H. & Horridge, M. & Roos, L., 2022. "A fiscus for better economic and social development in South Africa," Conference papers 333392, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:332608. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.