Modelling trade policy scenarios: Macroeconomic and trade effects of restrictions in cross border labour mobility

COVID-19 has drawn renewed attention to the economic importance of cross border mobility. Frictions in cross border mobility of labour can substantially impact the economy and international trade, by causing a long-term decrease in net migration that would alter the labour supply in many economies....

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Bibliographische Detailangaben
1. Verfasser: Smith, Donal (VerfasserIn)
Weitere Verfasser: Kowalski, Przemyslaw (MitwirkendeR), van Tongeren, Frank (MitwirkendeR)
Format: Elektronisch E-Book
Sprache:English
Veröffentlicht: Paris OECD Publishing 2022
Schriftenreihe:OECD Trade Policy Papers no.259
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Zusammenfassung:COVID-19 has drawn renewed attention to the economic importance of cross border mobility. Frictions in cross border mobility of labour can substantially impact the economy and international trade, by causing a long-term decrease in net migration that would alter the labour supply in many economies. To capture these macro-economic and trade effects, a global macroeconomic model (NiGEM) and a general equilibrium trade model (METRO) were used to simulate a stylised scenario equivalent to a 20% reduction in net-migration accumulated over the past ten years for all economies and regions. In OECD countries, this would translate into a reduction of the overall labour supply, and this shock would shift some economic activity towards non-OECD countries. At the sectoral level, exports of labour intensive manufacturing activities in OECD countries would contract, with electronics (13% of the total reduction of exports in the long term), automobiles (12%) and pharmaceuticals (9%) among the most affected.
Beschreibung:1 Online-Ressource (28 p.) 21 x 28cm.
DOI:10.1787/b37fa34f-en

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