Research backs contribution of immigrants
Immigration contributes significantly to every New Zealander's per capita income, new research shows.
The Department of Labour's International Migration Settlement and Employment Dynamics research showed that "without immigration, the outlook is bleak", Immigration Minister Jonathan Coleman said.
Without current levels of immigrants moving to New Zealand, the population would drop by 9.6 percent and gross domestic profit (GDP) by 11.3 percent by 2021.
At the current 20,000 annual net flow, annual GDP would be an extra $28 billion by 2021.
Double the number of immigrants, 40,000, would see GDP per capita rise 1.5 percent.
Dr Coleman said government policy had to "continue to focus on economic gains from immigration".
There was also intense focus on improving the service provided by Immigration New Zealand, he said.
The research found that, in general, immigration reduced production costs, improved competitiveness of New Zealand goods and services, benefited consumer spending and domestic investment and resulted in higher revenues for the government.
The research also showed New Zealand needed unskilled as well as skilled immigrants.
Favouring high-skilled migrants did not appear to to significantly increase the overall benefits, it said.
"When an economy grows labour is required at all levels."
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Comments and questions4
When are politicians like Coleman going to wake up- an increase in GDP is not the same an an increase in GDP per capita- I bet that is going down with increased immigration, and that is what detemines individuals wealth.
One of the benefits stated is "reduced production costs" i.e. wages are being driven down by immigrants- restrict immigration and wages will rise- simple as that.
Not even going into the fact that imiigration increases house prices making it impossible for our young to buy a home!!
Immigrants who come to Auckland, increase the load on our overstretched infrastructure requiring huge amounts of spending. We would actually be better of with a slowly declining population.
Perhaps we should focus on retaining the people and skills we have here rather than poaching talent from foreign cultures. After all, being brought up in our culture gives a worker a significant advantage over an immigrant, who might be equal in other regards.
Generally, I like the immigrants I meet. I just think that the high level of churn (people in and people out) has made life in NZ and particularly Auckland a soul destroying rat race.
Speaking as an indigenous NZ'er I do not see immigration as essential, I do not see it as desirable and in short I do not want even moderate levels of immigration. If the population fell and along with it the GDP, I think NZ might actually have a better quality of life. I might even get to work on time with my karma intact.
It sounds like the above Gentleman will never grow old, even with a slowly declining but aging population in the years to come!
Given the intense lobbying the government wouldn't want to be seen favouring developers and property investors over first home owners.
Migration and Economic Growth: a 21st Century Perspective
"Overall, it is equivocal whether there is enough robust evidence to support the claim that immigration is always positive for per capita growth. This paper concurs with the observations of the OECD, which stated “there is not sufficient or detailed enough data onvthe behaviour of the New Zealand economy to give clear answers on the overall effects on per capita incomes of existing residents”. While the evidence suggests small positive net gains from migration, these do not necessarily stack up as an improvement in per capita growth rates. Whether immigration is positive is also dependent on which particular group of people governments are concerned about increasing the welfare of. If it is overall national welfare then the evidence does suggest immigration is positive. But if this is achieved through a lowering of the wages of native workers, albeit while potentially increasing returns to the owners of capital, this distribution of benefit may not be seen as desirable. "
http://ideas.repec.org/p/nzt/nztwps/06-02.html
Immigration 'small benefit' to UK
Record levels of immigration have had "little or no impact" on the economic well-being of Britons, an influential House of Lords committee has said.
It says competition from immigrants has had a negative impact on the low paid and training for young UK workers, and has contributed to high house prices.
The peers want a limit on immigration levels - a view backed by the Tories.
http://news.bbc.co.uk/go/pr/fr/-/2/hi/uk_news/politics/7322825.stm
As in most models, the results are highly dependent on the initial assumptions used particularly around economies of scale. Equally plausible assumptions can reverse the conclusion of positive benefits, in both the Australian and New Zealand studies (Chapple et al 1994).
http://www.treasury.govt.nz/publications/research-policy/wp/2006/06-02/04.htm
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