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The Effect of Migrants on Economic Growth

Author: HeShao
Tutor: ZouHengFu
School: Wuhan University
Course: Finance
Keywords: Economic growth Immigration Huji Discriminations
CLC: F224
Type: Master's thesis
Year: 2005
Downloads: 745
Quote: 3
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Abstract


This paper studies the effect of migration on the economic growth. So, I will study this problem from the theory model and the practice.On the theory, I establishes two models to analyze the effect of migration on the economic growth and the relation between migration and the physical capital. The first model is the endogenous economic growth model. Under the basis of the research of Barro.Robert J and Xavier Sala-I-Martin(1995),this model brings migration into the Lucas model. In this model, we discuss the effect of migration on the economic growth on the condition of market competitive equilibrium. A major conclusion is drawn: the effect of migration on the economic growth depends on the reaction of migration to the change of physical capital, that is to say, if there is positive relation between migration and the change of the physical capital, migration will have some positive effect on the economic growth; but if there is negative relation between migration and the change of the physical capital, migration will have some negative effect on the economic growth.From the above analysis, we can find the relation between migration and the physical capital has important effect on the economic growth. So, we will discuss the relation between migration and the physical capital. This is the second model that is based on Lucas(2002).But, because Lucas(2002) suppose that the amount of the total population doesn’t change. Based on the suppose, he draws the conclusion: if there is migration, the migration must occur at initial period. This suppose will contradict with the fact. So we will modify the suppose and every country have different population growth rate. According to the modification, there is migration at every period. We can draw an important conclusion: there is positive relation between migration and the physical capital if there is no government intervention.On the practice analysis, this paper studies the relation between migration and the physical capital because the reaction of migration to the change of the physical capital is difficult to define. We can draw two conclusions: The first result is that there is more positive relation as China relaxes the control of migration through the Hujisystem; The second result is that the amount of population has important effect on the relation between migration and the physical capital.From the above study, we can find that migration has some positive effect on the economic growth. Then, it is necessary for China to relax the control of immigration

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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