Evaluate the economic impact of free immigration on a receiving country Essay

Published: 2020-04-22 15:24:05
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Category: Immigration

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Impact of free immigration on the economic prospects still remains vague as experts provide juxtaposing view and arguments but it clearly manifest that immigration has a deep impact on the economy of a country. (Borjas, 1995) Migrants pay taxes, claim benefits, consume services and these results in the amplification of government spending. If the balance between the payment of taxes by these immigrants and government expenditure disturbs, then it results into the fiscal deficit.

This can have adverse effects on the countrys economy. But studies (Home Office, 2007) showed that this balance remained migrants. This study says that in the long run, it is likely that the net fiscal contribution of an immigrant will be greater that that of a non-immigrant (Home Office, 2007; 10) Another added advantage of free immigration is the provision of labour. It remained a prime source of additional labour supply in the past and will serve the purpose of increasing productivity ion future.

Free immigration often occurs due to economic needs and these migrants remain enthusiastic and productive within the workplace. Legrain is of the view that when workers from poor countries move to rich ones, they too can make use of rich countries superior capital and technology, so they become more productive (Legrain, 2006; 64) Skilled and experienced migrants contribute in another way i. e. interaction between people with different experiences and ideas will supplement innovation and efficiency and production will increase.

Furthermore, Migrants will produce a consuming class that boost productivity and will maintain/increase the economic growth rate. Legrain says, Immigrants with different skills and abilities allow us to consume goods and services that were not previously available or consume existing goods and services at much lower prices (Legrain, 2006; 68). Although free immigration may have some adverse affects on the economy in the short-term but above-mentioned arguments and past studies shows that it has positive impact the macroeconomics inn the long term.

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