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Lookup NU author(s): Dr Wessel Vermeulen
This is the authors' accepted manuscript of an article that has been published in its final definitive form by Wiley-Blackwell, 2015.
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This article evaluates whether immigration can mitigate the Dutch disease effects associated with booms in natural resource sectors. We derive predicted changes in the size of the non-tradable sector from a small general-equilibrium model à la Obstfeld–Rogoff. Using data for Canadian provinces, we find evidence that aggregate immigration mitigates the increase in the size of the non-tradable sector in booming regions. The mitigation effect is due mostly to interprovincial migration and temporary foreign workers. There is no evidence of such an effect for permanent international immigration. Interprovincial migration also results in a spreading effect of Dutch disease from booming to non-booming provinces.
Author(s): Beine M, Coulombe C, Vermeulen WN
Publication type: Article
Publication status: Published
Journal: Economic Journal
Year: 2015
Volume: 125
Issue: 589
Pages: 1574-1615
Print publication date: 18/12/2015
Online publication date: 15/10/2014
Acceptance date: 17/04/2014
Date deposited: 13/03/2017
ISSN (print): 0013-0133
ISSN (electronic): 1468-0297
Publisher: Wiley-Blackwell
URL: http://dx.doi.org/10.1111/ecoj.12171
DOI: 10.1111/ecoj.12171
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