Macroeconomic Impacts of Canadian Immigration: Results from a Macro-Model
35 Pages Posted: 22 Oct 2012
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Macroeconomic Impacts of Canadian Immigration: Results from a Macro-Model
Date Written: October 22, 2012
Abstract
We use a macro-econometric forecasting model to simulate the impact on the Canadian economy of a hypothetical increase in immigration. Our simulations generally yield positive impacts on such factors as real GDP and GDP per capita, aggregate demand, investment, productivity, and government expenditures, taxes and especially net government balances, with essentially no impact on unemployment. This is generally buttressed by conclusions reached in the existing literature. Our analysis suggests that concern should be with respect to immigrants themselves as they are having an increasingly difficult time assimilating into the Canadian labour market, and new immigrants are increasingly falling into poverty.
Keywords: macroeconomic impact, immigration, FOCUS Model, Canada
JEL Classification: J15, E17, J18
Suggested Citation: Suggested Citation
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