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The Impact of Liberalizing Labor Mobility in the Pacific Region

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  • Walmsley, Terrie
  • Ahmed, Syud Amer
  • Parsons, Christopher

Abstract

Due to the lack of political consensus at the previous General Agreement on Trade on Services (GATS), negotiations on the temporary movement of natural persons (Mode 4) have stagnated. The growth in the economic literature surrounding this issue has also been lackluster; despite the large welfare gains that have been demonstrated to result from relatively small multilateral liberalizations on such transitory movements. This paper implements a CGE model of bilateral migration flows to quantify the benefits of liberalising GATS Mode 4 in the Pacific region. The results indicate that an increase in the labor forces of Australia and New Zealand from elsewhere within the Pacific region would raise welfare in both Australia and New Zealand. However the results show that while the Pacific Islands economies could gain substantially from the movement of unskilled workers, the loss of scarce skilled workers could lead to significant declines in the welfare of those remaining. Agreements regarding the movement of unskilled labor could therefore potentially constitute significant development policies which warrant further attention from policy makers.

Suggested Citation

  • Walmsley, Terrie & Ahmed, Syud Amer & Parsons, Christopher, 2005. "The Impact of Liberalizing Labor Mobility in the Pacific Region," GTAP Working Papers 1874, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    • Handle: RePEc:gta:workpp:1874
    Note: GTAP Working Paper No. 31
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    File URL: https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID=1874
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    Cited by:

    1. Magalhães, Aline Souza & Domingues, Edson, 2009. "Regional inequality and growth: the role of interregional trade in the Brazilian economy," Conference papers 331844, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Tania El Kallab & Cristina Terra, 2018. "French Colonial Trade Patterns and European Settlements," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 60(3), pages 291-331, September.
    3. Andrista, Safira & Widodo, Tri, 2017. "Welfare Impact of ASEAN Economic Integration: “ASEAN Way” Versus Theory," MPRA Paper 80880, University Library of Munich, Germany.
    4. Cristina Terra & Tania El Kallab, 2014. "French Colonial Trade Patterns: European Settlement," THEMA Working Papers 2014-27, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    5. Jacques Poot & Anna Strutt, 2010. "International Trade Agreements and International Migration," The World Economy, Wiley Blackwell, vol. 33(12), pages 1923-1954, December.
    6. World Bank, 2014. "Well-being from Work in the Pacific Island Countries," World Bank Publications - Books, The World Bank Group, number 18642.
    7. Razzaque, Mohammad A. & Raihan, Selim & Ahmed, Nazneen, 2006. "Global Rice Trade Liberalisation: Implications from Some Alternative Scenarios," Conference papers 331515, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Archana Srivastava & Somesh Kumar Mathur & Prabir De, 2023. "Ex-Ante Evaluation of India’s Trade Alliance with Indo-Pacific Region: A General Equilibrium Analysis," Foreign Trade Review, , vol. 58(2), pages 220-245, May.

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