Relaxing the Restrictions on the Temporary Movements of Natural Persons: A Simulation Analysis

50 Pages Posted: 21 Mar 2003

See all articles by Terrie Louise Walmsley

Terrie Louise Walmsley

Purdue University - Center for Global Trade Analysis

L. Alan Winters

University of Sussex; IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR)

Date Written: January 2003

Abstract

While the liberalization of trade has been at the forefront of the global agenda for many decades, the movement of natural persons remains heavily guarded. Nevertheless, restrictions on the movement of natural persons across regions impose a cost on developing and developed economies that far exceeds that of trade restrictions on goods. This Paper uses a global CGE model to investigate the extent of these costs, by examining the effects of an increase in developed countries' quotas on both skilled and unskilled temporary labour equivalent to 3% of their labour forces. The results confirm that restrictions on the movement of natural persons impose significant costs on nearly all countries (over $150 billion in all), and that those on unskilled labour are more burdensome than those on skilled labour.

Keywords: GATS Mode 4, temporary migration, CGE

JEL Classification: F22, J61

Suggested Citation

Walmsley, Terrie Louise and Winters, L. Alan Alan, Relaxing the Restrictions on the Temporary Movements of Natural Persons: A Simulation Analysis (January 2003). Available at SSRN: https://ssrn.com/abstract=389622

Terrie Louise Walmsley

Purdue University - Center for Global Trade Analysis ( email )

1145 Krannert Building
West Lafayette, IN 47907
United States

L. Alan Alan Winters (Contact Author)

University of Sussex ( email )

Sussex House
Falmer
Brighton, Sussex BNI 9RH
United Kingdom

IZA Institute of Labor Economics ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
29
Abstract Views
1,656
PlumX Metrics