THE IMPACT OF INTERNATIONAL MIGRATION ON ECONOMIC GROWTH IN AUSTRALIA
Abstract
This study examines the role of migration in the growth of the Australian economy, using annual data from 1990 to 2021. The study aims to determine whether migration has a positive or negative impact on economic growth in Australia, as the country continues to open its economy to immigrants. The impact of immigration on host economies has been associated with conflicting results when subjected to empirical testing. Australia is among the developed countries that have opened its economy to immigrants in pre-determined sectors and quotas tailored to meet the country’s skills needs. The study would play a key role in guiding policy makers in Australia on migration policies that complement economic growth agenda in the country. The study employs the ARDL to investigate the nature of this relationship. The findings of the study confirm that migration positively influences economic growth only in the short run. The findings of the study suggest that the Australian government's support of immigration indeed positively influences growth in the short run; however, other policies are required to support growth in the long run.
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DOI: https://doi.org/10.22190/FUEO240929004M
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