International Migration and the New Zealand Economy. A Long-Run Perspective.

Abstract

This study focuses on the macroeconomic sectoral and labor market consequences of international migration in New Zealand with particular emphasis on the relationship between migration and long-term economic trends. The Joanna model of the New Zealand economy is used to estimate the effects of changes in net migration on prices quantities and macroeconomic aggregates such as gross domestic product after markets have had time to adjust up to the year 2001. The authors conclude that the liberalization of the immigration laws in 1987 and the consequent increase in immigration will probably accelerate the rate of economic growth.