Showing papers in "International journal of economic development in 2003"

The economic impact of migration: a survey

Abstract: This survey reviews both theoretical and empirical papers that examine the economic effects of labour mobility. We address three broad sets of issues: firstly, the effect that immigration has on the host country's labour market. Although the possible adverse effects that immigration can have on the wage and employment levels of natives are typically examined, immigration may also have a role to play in raising skill levels. This leads to the second broad issue: the effect of migration of a particular skill composition on the long-term (endogenous) growth of the host country. Finally, immigration can have a major economic impact on the source country. These effects can either be positive or negative depending on the interplay between the effects of growth, remittances and the brain drain.

Effect of Information and Communications Technology on Stock Market Development: Evidence from Emerging Markets and High-Income Economies

Abstract: This paper investigates the links between information and communications technology (ICT) and stock market development in a sample comprising of high-income and emerging market economies. The empirical results of the least squares dummy variable model confirms that personal computers and internet hosts as the two ICT variables having strong positive effects on stock market development. The results also revealed strong positive effects of market capitalization and credit to the private sector as non-ICT contributors to stock market development. Controlling for income and technological differences, our results lead us to conclude that emerging market economies have already seized an opportunity to leap frog the high-income countries that is, by going straight from underdeveloped networks to fully digitized networks, bypassing the traditional analog technology. As such this leap frogging is positively enhancing their stock markets. Some policy implications are drawn. 1. Introduction Numerous studies pertaining to the literature on stock market development have emphasized the impact of several financial and economic variable (see for example, Levine, 1991, p. 1445; Bhide, 1993, p. 2; Atje and Javanovic, 1993, p. 632-38; Harris, 1997, p. 139-140; Levine and Zervos, 1998, p.3-4; Beck, Levine and Norman, 2000, p. 195-93; Arestis, Demetriades and Luintel, 2001, p. 20). A factor that in recent times seems to have a possible strong impact on growth and development of stock markets is the new information and communications technology (ICT): mobile phones, personal computers and internet hosts. At the theoretical level, some studies have presented arguments in favor of the possible beneficial effects of information technology on an economy's financial sector. For example, Levine (1997, p. 942-43) notes that changes in telecommunications and computers, among other factors, influence the quality of financial services and the structure of the financial systems. In additions, the World Bank (1998, p.12) notes that advancements in communication have for long been a major driving force bringing about positive economic changes to many countries. Further, the Human Development Report 2001 (UNDP, 2001, chapters 2 and 3) gives a comprehensive account of how new technologies, including information and communication technology, work for the betterment of an economy. The rapid pace in dissemination of vast amounts of vital information on the performance of stock and financial markets is possibly contributing to the speed of the development of stock markets. However, at the empirical level, the literature is still rare particularly in terms that support the theoretical contention as indicated above. One reason for this rarity is the lack of long-term time data series particularly on the modern instruments of ICT (mobile phones, personal computers and Internet hosts) necessary to validate the theoretical contention. While some data have recently been made available on some of the modern instruments of ICT, an empirical investigation into ICT and stock market relationships would perhaps be a modest start to ascertain the impact of new information technology on the growth of stock markets. Such useful attempts would also complement the current discussions on information technology and its role in spreading financial knowledge. Thus, the primary aim of this paper is to examine the contribution of ICT on stock market development in emerging markets and high-income economies. To that end, in section two, we discuss some theoretical arguments on information technology and stock market knowledge linkages. A discussion of the estimation methodology, data and empirical findings are presented in section three. A conclusion and policy implications are provided in section four. 2. An Overview of ICT and Stock Market Developments One of the support systems of a country's financial market is the stock market. …

Economy versus Lifestyle in the Inter-Metropolitan Migration of the Young: A Preliminary Look at the 2000 Census

Abstract: This paper a measures net migration into (out of) 100 U.S. metropolitan areas between 1990 and 2000 by people aged 15-24 in 1990, modeling variation as a function of economic growth in the late 1980s, amenity variables in 1990-1993, and each metropolitan area's technology base in 1990. Multi-collinearity among independent variables is addressed by creating oblique factors to reduce seven variables to three; and through use of path analysis to specify direct and indirect causation (correlation) explicitly. Results suggest that economic growth and technology were more important drivers of youth migration in the 1990s than amenities. Because the study used comprehensive, but relatively traditional measures of place amenities, it was unable to directly test recent hypotheses about effects of hip, "Bohemian" culture and ethnic or gender preference diversity on the migration decisions of people in this age cohort. INTRODUCTION For economic development professionals of each era, there seems to be one indispensable policy lever for creating economic growth. In the 1960s and 70s, it was the need to drive down tax and labor costs. In the 1980s and 1990s, it was sports venues and downtown revitalization. It may be too early to tell, but this is shaping up to be the decade when development practitioners feel compelled to do one thing above all others: attract educated young people to their jurisdictions. Consider, for example, the recent proliferation of state programs designed to prevent the "brain drain" of young people trained in local universities (Chronicle of Higher Education, 1998; McLaughlin, 1999; Associated Press, 2000; Indiana Fiscal Policy Institute, 2000; Tornatsky et. al., 1998). This new conventional wisdom is grounded in academic research as well as several broad, stylized facts. Many economists argue that human capital has replaced physical capital as the primary driver of economic growth (Lucas, 1988; Romer, 1990; Mathur, 1999). This means that the policy maker's first goal must be to attract smart people--not plants and equipment--to his/her own patch of ground. The research university has also received considerable attention as a source of entrepreneurial growth in regions (Beeson and Montgomery, 1993; Bania, Eberts, and Fogarty, 1993). Educated young people are both an integral part of the research process at these institutions and an inevitable by-product of their broader mission (Florida, 1999; Bound, et al., 2002). If we look at metropolitan areas in the 1990s, we see positive correlations among per-capita income growth, concentration in industries typically regarded as high-tech--such as information science and biotechnology--and a high proportion of younger workers (1). It is logical to suppose that younger workers are disproportionately concentrated in cutting-edge sectors of the economy. They will migrate toward--and also propel forward--those regions that succeed in the so-called New Economy (2). What factors, then, affect migration patterns of the young and educated? Universities are one answer: Ann Arbor had 11,000 more 20-21 year olds in 2000 than we would expect by aging the same cohort living there in 1990--and 8,700 fewer 30-34 year-olds (3). High-paying job opportunities are a useful, if not always necessary, condition for attracting graduates. Some young people are clearly attracted by the "bright lights" of cities like New York and San Francisco, and will be happy to serve cappuccinos until they get their big break. In several recent reports and a widely-read book, geographer Richard Florida highlighted the role played by America's young "creative class" in the recent high-tech boom, and hypothesized that lifestyle amenities are a crucial location factor for this group of workers (Florida, 2000, 2002; Florida and Gates, 2001). While Florida is not the first to write about amenities as a source of economic growth (see, e. …

Policy Conflict in Intergovernmental Relations: The Changing Role of Local Authorities in the Goverance of Local Economic Development in Post-Devolution Scotland

Abstract: This paper explores the impact of devolution on Local Economic Development with specific reference to the role of local authorities, and locates this study within broader debates about policy change. We explain the institutional framework for Local Economic Development in Scotland inherited by devolution and we consider the process of devolution to date and recent policy change in this area, including Community Planning and reform of the Enterprise Network. Throughout the paper looks at issues of fragmentation, divergence and power in inter-governmental relations between key actors and institutions. The findings of original research into the attitudes and perceptions of local government actors are located within this context and compared with existing data. The analysis outlines the main area of conflict between central and local government in this area and suggests that economic development activity is becoming increasingly centralised post-devolution. In conclusion we offer suggestions as to what this tells us about broader inter-governmental relations ands the impact of constitutional change. Introduction In 2001, the authors (1) received funding from the Joseph Rowntree Foundation to research the impact of the new Scottish Parliament on local government. One strand of the project focused on the impact of the Parliament on the roles of local authorities in economic development. Much of the recent literature on the nature of policy making and policy change has focused on the relationships between different institutions and actors in various policy communities. The key issues that arise from this literature concern the fragmentation and conflict within and between different levels of government. This "differentiated polity" (Rhodes 1997). The differentiated polity concept is used to describe the interdependencies between different institutions and actors including policy making and implementation agencies, specialised bureaucracies and different levels of government. Rhodes, for example, drawing on Wright, emphasises bargaining and dynamic exchanges between actors within structured political contexts. This emphasis on bargaining has recently been seen in the debate about the "dialectic" in policy networks in which agents interact with and change, yet are constrained by, their structural context (for example Marsh and Smith 2000; Dowding 2001; Marsh and Smith 2001). The value of this description is that seems to take account of the agonistic (Mouffe 2000) nature of policy making in which policy values, conflicts over status and resources are all essentially contested. It is this understanding of power, conflict and politics between groups with different interests which informs our explorations of governance and change in the following sections. In this context the paper explores the impact of devolution on Local Economic Development with specific reference to the role of local authorities, and locates this study within broader debates about policy change. We explain the institutional framework for Local Economic Development in Scotland inherited by devolution and we consider the process of devolution to date. We also consider key policy developments, including Community Planning and reform of the Enterprise Network. Our research into the attitudes and perceptions of local government actors is located within this context and compared with existing data. The analysis outlines the main area of conflict between central and local government and suggests that post-devolution economic development activity is increasingly centralised. In conclusion we offer suggestions as to what this tells us about broader inter-governmental relations and the impact of constitutional change. Local Economic Development in Scotland There is a long history of Local Economic Development in Scotland. By the mid-1960s, Scotland was developing a distinctive set of institutions for economic development (Fairley and Lloyd 1995 and 1998). …

Globalization, Migration and Global City Hypothesis

Abstract: Outside of population geography, migration as a process driving globalization has remained in the shadows of the literature. Migration has only really been acknowledged by other social scientists tendency in conceptualizing global cities. In this paper, I wish to extent our understanding of globalization and migration by linking together studies of transient professional migration, transnational corporations, and global city financial centers. First, I discuss transient migration as a process in the globalization debate. Second, I review a series of qualitative methods, which have extended our knowledge of globalization and transient professional migration. Third, I illustrate the importance of migration as a globalization tendency, through an analysis of official international migration statistics. Fourth, I respond to general question it has three aims. It redresses lack of focus on the relationship between immigration and the global city hypothesis. It evaluates the global city hypothesis in relation to immigration in primarily Europe's large metropolitan regions. I do this initially by discussing Sassen's thesis, and then follow with an exploration of the subsequent literature that has sprouted from her arguments. I maintain that such a critical analysis of Sassen's ongoing research project and the parallel issues of urban inequality. I call this a "renewal" of the "global city hypothesis." INTRODUCTION Globalization is upon us, and we can't escape its unevenness around the world. Geographers, political scientists, sociologists and many others, have been debating the virtues of globalization since the 1990s (e.g. Allen and Hamnett, 1995; Allen and Massey, 1995; Amin and Thrift 1994; Castells, 1996; Cox, 1997; Dicken, 1998; Harvey 1996; Featherstone, 1990; Storper, 1997). For example, Amin and Thrift (1997) point to five globalizing tendencies: (1) globalization of money and financial capital; (2) importance of knowledge-structures as a factor of production; (3) internationalisation of technology; (4) transnational oligopolies; and (5) rise of transnational diplomacy between firms and states. Work on international and domestic migration, however, has remained almost transparent in globalization tendencies (Lee and Wills, 1997): at both a theoretical and empirical level (but exceptions do include, for example Castles and Miller, 1993; Petras, 1981). We must acknowledge that international migration is a powerful process, and outcome, of the ages of internationalization and globalization, especially when we consider the emotive phenomenon of brain drain. It is widely accepted that brain drain, that is settler migration of professional, scientific, technical and/or post-qualified students, has caused severe leakage of skills and wealth generation, from both developed and developing states, and regional blocks of the world (Cohen, 1996a-b). What remains less identified by nation states and policy strategists in their analyses of brain drain, however, are the flows of temporary, or contracted, professional, scientific and technical migrants, who are not settler migrants, but may move quite often between nation states (Appleyard, 1989). Such professional migrants have been termed 'transients', and remain relatively 'invisible' in studies of both skilled international migration and brain drain (Appleyard, 1985, 1989; Findlay, 1988; Salt and Findlay, 1989). Importance of transient professional migrants in the world system cannot be underestimated as we attempt to extend our knowledge of brain drain. 'Transient' professional migration has been fuelled by the organizational strategies of transnational corporations. During the last 30 years, economic restructuring, the rise of the new international division of labour and advances in information technology and travel, have all encouraged transnational corporations to fragment and extend their industrial activities offshore, from their host country (Dicken, 1998). …

Issues in High-Skilled International Migration

Abstract: Highly-skilled migrants are becoming a more important part of the world economy and of policy debates in a diverse set of countries. The proliferation of skills around the world, increases in world trade, the growth of R&D, and the general increase in the labor market demand for diverse sets of skills, have all contributed to the emergence of high-skilled migration as a major factor in the economies of most countries. High-skilled migration is often discussed in narrow terms of "brain drain/brain gain", when both the pattern of migration and its effects appear to be much more complex. However, our understanding of the effects of high skilled migration is much less than for international migration in general, and is based upon much less research and data. This paper reviews the possible effects of high skilled international migration, and the major research and policy questions that need answering. INTRODUCTION Migration across national borders provokes many spirited political and policy debates. Although these debates are often most contentious when they deal with lower-skilled migrants, high-skilled migration also raises strong emotions. If nothing else, immigration changes the status quo. If lower-skilled migrants are sometimes said to take jobs that natives do not want, high-skilled migrants are employed in the types of jobs that many would prefer go to natives. At the same time, government in both less-developed and many developed countries worry about losing their more highly educated workers. As high-skilled migration appears to become more important to the world economy, it becomes all the more important to understand its likely effects. Unfortunately, these effects have not been well studied or measured and are likely to be more complex than acknowledged in most policy discussions. This paper provides an overview of the major research and policy issues in the international migration of highly skilled individuals and their families. Knowledge and understanding of this migration's effects are limited not only by available data (as is the case in much immigration research), but also by unanswered questions in labor market theory and economic growth theory: How fungible are skills among those with specialized knowledge? Does presence in an economy of highly skilled workers affect investment and R&D decisions by firms (increasing demand over time for high-skilled workers)? Do more scientists lead to more knowledge? This paper does not answer these questions, but deals with how these and other questions affect our understanding of high-skilled migration. As the world's largest economy, as the largest educator of foreign students, and as a traditional nation of immigration, the United States is an important nexus for the international movement of high-skilled workers. As such, this paper uses U.S. data on high-skilled migration to and from the United States to provide some insights into the magnitude and direction of the possible effects of high-skilled migration. While this paper often focuses on economic and knowledge creation effects for individual countries and the global economy, it is also important to recognize that this should not be the only component of policy making on immigration policy. Freedom of movement is valued as a human right, and is recognized as such in the Universal Declaration of Human Rights, albeit in a limited form. Aside from the maximization of human liberty, it seems likely that migrants themselves incur greater economic benefits and costs of high-skilled migration--theory would suggest that at least the expected value of individual net benefits is positive for those who choose to migrate, although these benefits and costs may also include substantial non-economic factors. On the other hand, countries may seek to limit immigration for cultural reasons, or prefer for humanitarian reasons to favor immigration of family members of previous migrants. …

Migration and Development: The Case of Turkish Migration to Germany

Abstract: This article reviews empirical research and studies to investigate the impact of international migration from Turkey to West Germany on economic development of Turkey. The paper is organized in three sections. The first section provides a theoretical background for the complex relationship between migration and development. The second section presents the size and nature of the international labor migration from Turkey to Western Europe and, specifically, to West Germany. The last section includes discussions of the potential effects of labor recruitment, remittances and return migration, and the extent that these potentials are realized. Overall impacts of the migration flow on development of Turkey are also presented. INTRODUCTION The main phase of labor migration from Turkey to Germany was initiated with bilateral labor recruitment agreements between two governments in the early 1960s. Given both countries' economic and social conditions, labor recruitment seemed a viable solution. Germany expected to receive a temporary labor supply and, therefore, get away with the high costs of incorporating migrant workers, while sustaining economic growth without the pressure of raising wages. Turkey, on the other hand, hoped for an impetus for economic development and modernization resulting from remittances and return of the migrant workers. A decade later, in 1973, the German government abruptly halted labor recruitment. At the same time, it provided incentives to encourage return migration. Despite these incentives, volume of return migration remained low while Turkish population in Germany increased as a result of family reunion and high fertility rates. The number of Turks in Germany stabilized in the course of time, with more than two million Turks living in Germany today. While the more visible economic and social effects on Germany have received increasing scholarly interest, effects of this migration on Turkey remains less studied. There have been studies, tracking return migrants and investigating impact of remittances and return migration on specific villages or towns. However, there has not been enough work evaluating macro scale economic and social consequences of this migration on Turkey. In fact, migration's effect on economic development of sending countries remains "unsettled" according to many scholars. In the first section of this paper, I review theoretical approaches to the complex relationship between international migration and economic development. In the second, I discuss the conditions for the initiation and continuation of Turkish migration to West Germany. I review empirical research and studies that investigate the effects of Turkish labor migration to West Germany on development efforts of Turkey in the last section. Rather than micro level effects of migration, I concentrate on macro scale effects of migration on national economy of Turkey. In doing so, I focus on the expectations of economic development and the extent to which these expectations have been accomplished with a dynamic perspective. I include in the discussion, the maturity of the migration flow and related social and economic changes, which in turn effect expectations and their realization. The role of the government policies is also discussed. INTERNATIONAL MIGRATION AND ECONOMIC DEVELOPMENT Out-migration affects development of sending countries in three major ways: through export of labor, return migration, and remittances. Therefore, to determine overall impact of migration on the sending countries, it is crucial to evaluate its effects on these three grounds. When the effects are positive it is implicitly assumed that economic laws will operate and automatically lead to economic development and growth. Literature focuses on determining positive and negative effects of migration through export of labor, return migration, and remittances, but largely ignores the assumption that once the conditions are satisfied, "take off" is inevitable for the sending country's economy (Penninx 1982). …

Regulating the environment: Economic development and the states

Abstract: Policy makers at all levels of government would likely agree on the desirability of both a growing economy and a clean, healthy environment. Yet, for decades there has been a widely held belief that environmental controls have undermined economic competitiveness. Thus, state policy makers are often confronted with choices between protecting the environment and promoting economic development. The work presented in this article identifies the various linkages between state environmental programs and economic growth. In this article, I apply an empirical model, based on transaction cost theory, to state manufacturing industries and investigate how well the double-focus of industry growth and environmental protection has been developed in the states. The results presented here indicate the potential for certain state environmental administrative structures to enhance economic growth by reducing uncertainty and transaction costs. Introduction The relationship between environmental goals and industrial competitiveness has conventionally been thought of as involving a tradeoff between social benefits and private costs. The traditional view is that firms pursue efficiency at the expense of environmental protection. Markets can induce over-consumption of environmental resources, such as clean air. Reciprocally, environmental concerns are often blamed for undermining market performance. Environmental regulation can lead to undue costs and prevent the unfettered behavior needed for achieving economic development. State policy makers would likely agree on the desirability of both a growing economy and a clean and healthy environment. Yet, for decades there has been a widely held belief that environmental controls have undermined economic competitiveness. Thus, state policy makers are often confronted with the choices of protecting the environment or promoting economic development. Anecdotes about companies ruined by environmental regulation abound. However, some scholars and political leaders have suggested this tradeoff is false. In recent years there have been an equal number of anecdotes about companies pulled back from the brink of failure through environmental efficiency. Stories about the growth of "green companies" give rise to the argument that policies of environmental protection can actually spur economic growth. Recently, several studies have reported positive cross-sectional correlations between levels of state environmental protection and personal income, but do not provide systematic explanations for how environmental programs enhance economic growth or subject their hypotheses to rigorous empirical tests (cf. Meyer, 1992; Hall, 1994; Kromm et al., 2000). The work presented here identifies the various linkages between state environmental programs and economic growth. In particular, I am interested in how the administrative design of environmental programs influences state economies. In this paper I apply an empirical model based on transaction cost theory to state manufacturing industry employment and investigate how well the double-focus of industry growth and environmental protection has been developed in the states. The model and empirical results presented here indicate the potential for certain state administrative structures to enhance economic growth by reducing uncertainty and transaction costs. The Tradeoff Literature Increasingly the assumption of a tradeoff between environmental protection and economic growth at the state level has been challenged. For example, a recent study by the Institute for Southern Studies correlated state rankings on economic and environmental indicators and found that the states that do the most to protect their environment also have the strongest economies. The conclusion reached by the authors was that policy makers do not have to choose between jobs and the environment (Kromm et al., 2000). Although such work is informative, it suffers from a number of limitations. …

Paradise Lost? Miami, Immigration and Economic Development

Abstract: For some, Miami has become a prototypical global city, driven by immigrant entrepreneurs and serving as an economic development model for other places. Immigrants, beginning with exiled Cubans in the 1960s, followed by successive waves of talented people from Latin America, turned this sleepy tourist destination into the Gateway to the Americas, quite literally. Ironically, those factors--location, immigration, culture, and finance--that made Miami grow and develop also have a severe downside. Miami is the poorest city in America, with one-third of its population living in poverty, and has been so for three decades. Miami is a global player in the illicit drug trade, a capital for money laundering and criminal activity of all kinds. Miami is a place steeped in racial, ethnic and cultural tensions. Miami teaches us that culture, ethnicity and race are important factors in the economic development of cities for the new millennium, factors not yet fully understood or appreciated. INTRODUCTION Miami is a place of conflicting impressions about its economic development--Paradise gained, or Paradise lost? Some observers refer to Miami as the Gateway to the Americas, the new capitol of Latin America, a Global City, or the new Havana, held up by many as a model of how immigrant entrepreneurs turned a sleepy, vacation-destination city into an economic power. The implication: other under- or less-developed cities might do the same. Others are not so charitable, viewing Miami as a banana republic, the Cuban-American Republic, or a Latin colony. To them, Miami represents the importation of some of the worse features of Latin American economic development and politics, not to mention poverty. No one who knows Miami well seems neutral in their perceptions. We believe that the truth lies somewhere between these two extremes. Because Miami attracts a lot of attention from those interested in promoting the global economy, it is important to unravel what's going on so that others might learn from the experience. Economic development in Miami, however perceived, arises from the confluence of five factors, all in one way or another associated with cultural change, global economics, and geographical location: * Development of Cuban exile culture over the past forty years and its relationship to: * Influx of newly-arrived immigrants from economically distressed or war-torn Latin American and Caribbean countries; * Circumstances of non-Hispanic Americans, especially African Americans. * Influence of laundered drug money from Latin America; and * Attraction of flight capital from, economic growth in, and burgeoning trade with Latin America and the Caribbean. This article discusses the contribution of each factor to Miami's economic development. BACKGROUND Before turning to economic development issues, we provide an overview of Miami's geography, immigrant population, and local economy. Geography Miami is an elongated urban area--Miami-Dade County--sprinkled with municipalities of differing size, including: the cities of Miami, North Miami, Hialeah, Coral Gables, Kendall and Homestead, as well as a necklace of cities along the beach, among them Miami Beach, Bal Harbor, Surfside, Sunny Isles, Golden Beach, and Aventura. Miami is bounded on the west by Everglades National Park and associated wetlands. Not surprisingly, environmentally protected areas on the west and ocean on the east reduce the amount of land for development that in turn drives up the value of scare real estate along the Atlantic coast. Immigrant Populations Miami is a city of immigrants, even more so than cities in the U.S. West and Southwest, and even New York (Suro & Singer, 2002). Miami's population numbered 2,253,362, according to the 2000 Census (see Table 1). Some 57.3%, or 1,275,029 people, reported their ethnicity as Hispanic or Latino (we use the term, Hispanic, hereafter). …

U.S. Educational Outcomes and the New Latino Immigrant

Abstract: Population projections indicate that the Latino population as a whole will become the largest single ethnic group in the United States (U.S.) by 2020, a significant portion of which can be attributed to immigration. While the U.S. Latino population consists largely of Mexican, Puerto Rican, and Cuban descent groups, recent immigrants hail increasingly from Central and South American countries, leading to even greater population diversity. Disproportionately poor and unskilled, Latino immigrants enter the U.S. hoping for economic gain and a rising living standard for themselves and their families. Thus, as have other groups, they seek educational opportunities as a means for social and economic mobility. However, Latinos have been particularly marginalized in terms of educational outcomes in the U.S. We examine this problem against recent demographic changes, tracking educational achievement for the U.S. Latino population in general and new immigrants in particular. Analyzing these outcomes in light of societal stratification and inter- and intra-group structural relations, we develop a critical assessment of them relative to current policy perspectives and propose an alternative policy approach to education based on cultural dynamics reflected in patterns of interaction within and between the groups in question and the broader society. INTRODUCTION Individuals decide to leave their homelands and travel to a foreign country to live and work for a variety of reasons, including for example, escaping some of the direst conditions of human social existence, physical torture, religious persecution, political repression, or grinding poverty. As a destination of choice, the United States has had a long history of immigration and, although the image of the U.S. as the "land of opportunity" has faded, its "pull" still appears more salient than its "push," with immigrants attracted by the hope of a better life. "Pushed from their homelands by overpopulation, slow economic growth, and lack of opportunity," immigrants have been pulled to the U.S. and other developed countries by "relatively high wages, greater opportunities, and the strong demand for cheap labor in certain parts of the economy (for example, garment industry sweatshops, some forms of agriculture, and domestic work)" (Bradshaw, et al., 2001: p. 230). Immigration is one of the principal population processes in the contemporary period and, while immigration to the U.S. has originated from around the world, one of its largest sources has been Latin America. Indeed, at the end of the Twentieth Century, approximately half of U.S. population growth was due to immigration, and half of all immigrants to the U.S. were from Latin America, with Mexico being the single largest country of origin. (1) Projections indicate that the Latino population as a whole will become the largest single ethnic group in the U.S. over the next two decades--and it is a population becoming increasingly diverse. Although the U.S. Latino population is constituted largely by Mexican, Puerto Rican, and Cuban descent groups, the new Latino immigrants include growing numbers from Central and South American countries to a significant degree. In general, possibilities for improving life chances are the principal motivation for emigrating. These new immigrants are disproportionately poor and unskilled, and a major impetus for their immigration has been the dream of economic gain and rise in living standards for themselves and their families. To that end, as have so many other groups, they seek educational opportunities as a means for social and economic attainment and mobility. However, the allocation of life chances--i.e., acquiring and sharing in the economic and cultural goods of society--is asymmetrical, with material rewards and cultural goods differentially distributed, e.g., as in access to education (Weber, 1968). Access to and the benefits of education are not necessarily available to all in the U. …

Geographical Distribution of Illegal Immigrants: The Case of Greece

Abstract: A simple model of optimal immigrant community size determination is presented. The optimal size for the immigrant community may be different from that of the national community. The geographical distribution of illegal immigrants among the regions of Greece and its determining factors are examined with data made available after the 1998 legalization program. The results confirm findings in the literature. Independent participation of women in migration is also observed in the literature. INTRODUCTION Traditionally, Greece has been a labor exporting country. The most recent significant wave of out-migration occurred from 1958-1972 when more than a million people (exceeding ten percent of Greek population) migrated to Western Europe, mainly Germany (Lianos, 1993). This tradition reversed during the last twelve years. Following the collapse of the Soviet Union and the fall of communist regimes in Eastern Europe, hundreds of thousands of migrants entered Greece illegally mainly from Albania, but also from other Balkan countries, as well as from distant countries such as Ukraine, Georgia, Pakistan, Philippines and India. Various estimates of the number of illegal immigrants have been range from 300 to 600 (Lianos et al. 1996: pp. 449-483). The legalization program of 1998 allowed all immigrants to apply for residence and work permits renewable after five years. More than 371,600 immigrants participated but researchers and Government officials, believe that many immigrants preferred to remain illegal, probably because the risk of deportation was small as long as they stayed out of trouble and also because legalization would mean financial losses in the form of tax payments and contributions to social security. The applications for residence and work permits were submitted to local government offices. Thus, the submissions of applications provide immediate information about the residence of every immigrant while illegal and therefore of the allocation of immigrants over the area of Greece. This paper uses these data to examine the factors that are related to the immigrants choices of location. We also use a different and less informative set of data to draw information about the mobility of immigrants after legalization. LITERATURE REVIEW Literature on the geographical distribution of immigrants in the receiving country, suggests that (Stark 1991: ch. 3, Lalonde and Topel 1997: p. 803, Venturini 1994): 1. Immigrants from a certain origin are not distributed evenly in the receiving country, nor they are concentrated in one single city or area. Rather, they tend to form clusters in major cities. 2. Numbers of immigrants may be large in absolute size but their proportions seem small relative to the size of the national population. 3. The degree of concentration of immigrants may depend on their level of education and skills (more educated people show less concentration) and on their national origin, (e.g. Greek immigrants to USA are more concentrated than British.) 4. The geographical distribution of immigrants in the receiving country does not change easily. Although immigrants move, they tend to move between places where other immigrants of the same origin already exist. Data analysis below reveals the distribution of illegal immigrants over the region of Greece is consistent with the literature. This suggests that there is an optimal number of immigrants in relation to the size of the population of a local community, i.e. an optimal proportion of immigrants in each community. The determination of this proportion is examined, in general terms, in the next section. THE OPTIMAL SIZE OF IMMIGRANT COMMUNITY The fact that there are people who are willing to migrate, legally or illegally, to other countries and people who are willing to accept immigrants to their own country can be taken as evidence that migration has benefits for both parties--immigrants and local population. …

Foreign Immigration and Economic Development in Greece (1)

Abstract: A country may benefit from foreign immigration because of the increased unavailability of cheap labor, but encounter problems from xenophobia and social unrest The end result depends on demographic characteristics, qualifications and immigrant skills and the capacity of the host country to absorb foreign labour and benefit from it Migrants in Greece comprise about 9% of the population and 12-13% of the labour force Their influx occurred in a relatively short time, the overwhelming majority entered Greece illegally but after two regularisations, one in 1998 and another one in 2001, about 700,000 have been granted a legal status Their average age is considerably lower that that of the rapidly aging national population, in hundreds of primary schools their children make up over 10% of the total school population and in some over 30% About 8 out of 10 are economic immigrants but to a very small extent does their labour appear to substitute for national labour; for many jobs in construction, agriculture, tourism and domestic service their labour tends to become indispensable and as their depended younger family members who joint them come to age they form a continuous flow of young foreign entrants into the labour force This paper investigates the main facets of the economic and social development in Greece and benefits and costs of the influx of large numbers of migrants since the late-1980s for the Greek economy and society The emergence of xenophobia and racisms and the impact of discrimination on migrants' inclusion into the host country will also be looked at, alongside policy responses INTRODUCTION Unlike other western European countries but similar to other southern European member states of the European Union, Greece has started attracting large numbers of third-country migrants only since the late 1980s--early 1990s Greece has hosted since, nearly one million foreign immigrants (around 9% of the indigenous population and 12%-13% of the labour force) This very visible presence of migrants, has been the subject of social alarm boosted by media attention, and is at odds with the extent of the phenomenon in neighbour Italy, where migrants do not exceed 2% of the population (Mingione and Quassoli, 2000: p41) More than half of them are migrants from Albania, and most of the remainder arrived from the former socialist countries and from a variety of less developed countries in Africa and Asia The majority have been undocumented migrants employed almost exclusively in unskilled or low skilled jobs, irrespective of their qualifications and skills Statistics on the number of migrants, their geographical distribution and spatial mobility as well as their demographic and occupational characteristics are only partially available and problematic in nature (Lazaridis and Romaniszyn, 1998: p12) This paper consists of three parts Part one, looks at the opportunity structure available to migrants under the labour market and overall socio-economic conditions in the host country In part two, after outlining some of the main characteristics of immigration into Greece, including type of flows and status of migrants, we analyse the short and long-term socio-economic effects of immigration in terms of policy responses In part three, we try to decipher positive and negative effects of migration into Greece for the host country but also for the migrants themselves Unlike those who migrated in the pre-mid-1970s migration period to Fordist societies, migrants who came to Greece could neither 'benefit' from a developing industrial economy requiring large numbers of cheap labour, nor take advantage of sizeable, strongly rooted communities and networks of fellow citizens (at least in the early 1990s) to offset some of the risks of migration (these often serve as a first reference point for mediating the process of social and economic inclusion into the host society and economy) …

Immigration, Globalism, and the New American Empire

Abstract: Prologue In our day, everything seems pregnant with its contrary. Machinery gifted with the wonderful power of shortening and fructifying human labour, we behold starving and overworking it. The new-fangled sources of wealth, by some weird spell, are turned into sources of want. The victories of art seem bought by the loss of character. At the same pace that mankind masters nature, man seems to become enslaved to other men or to his own infamy. Even the pure light of science seems unable to shine but on the dark background of ignorance. All our invention and progress seem to result in endowing material forces with intellectual life, and in stultifying human life into a material force. This antagonism between modern industry and science on the one hand, modern misery and dissolution on the other hand ... is a fact, palpable, overwhelming, and not to be controverted. --Karl Marx, speech at the anniversary of The People's Paper, 1856 The world in which we live is both remarkably comfortable and thoroughly miserable. There is unprecedented prosperity in the world, which is incomparably richer than ever before ... But ours is also a world of extraordinary deprivation and of staggering inequality ... The dual presence of opulence and agony ... makes it hard to avoid fundamental questions about the ethical acceptability of the prevailing arrangements and about our own values and their relevance and reach. --Amartya K. Sen, "Globalization and Values," 2001 Ever since George Washington warned his countrymen against foreign entanglements, empire abroad has been seen as the republic's permanent temptation and its potential nemesis. Yet what word but "empire" describes the awesome thing America is becoming? ... Being an imperial power, however, is more than being the most powerful nation or just the most hated one. It means enforcing such order as there may be in the world and doing so in the American interest. It means laying down the rules America wants ... while exempting itself from other rules ... that go against its interests. --Michael Ignatieff, from "The Burden," New York Times Magazine, January 5, 2003 INTRODUCTION The excerpts quoted in the Prologue span more than 150 years of recent human history, right up to the present moment, and capture at least two old realities and one new one. To some, the first of the old realities seems almost biblical--"the poor you will always have with you"--and from that emanates the biblical desire to make them more secure in their poverty, rather than to eliminate it, as was Lyndon Baines Johnson's bold intent when he signed the Economic Opportunity Act of 1964 (Levitan, 1969). A second old reality follows on the heels of the first: while these thinkers can point us either toward pessimism or optimism, they beckon all of us to the need for an appraisal of our values and actions toward the great mass of socio-economically disenfranchised peoples throughout the world. What makes this call an old one, of course, is that it has been raised almost continually through the last two millennia by as diverse a cast as Jesus Christ, Mohammed, Adam Smith, Karl Marx, Dwight David Eisenhower, and, even sometimes, the editors and writers at the New York Times and the Wall Street Journal. But it is the new reality reported by Ignatieff that makes this a historically unique context in which to make these observations, and summons us to reflection and action. This is, of course, the self-conscious emergence of the United States as the Western Hemisphere's newest and imperial power. I will not go into the distinctions Ignatieff draws between the kind of imperial power the United States now wields and that commanded by its 20th Century predecessors, e.g., the English, the French, the Germans, the Ottomans, or the Soviets, leaving that to writers already embarked on that project (e.g., most provocatively, Hardt and Negri, 2001). …

Engaging the Community in Productive Public Conversations about Immigration

Abstract: Immigration is a difficult subject to talk about in public settings because it arouses strong feelings. This article reports on four case studies from the United States and Canada which involve democratic organizing efforts to bring citizens together for deliberative dialogue on this difficult subject in a way that builds mutual understanding and trust and involves participants in weighing options and making choices. The authors identify common themes from the cases and draw conclusions. INTRODUCTION Americans have been debating costs and benefits of immigration since the Nation's birth. In 1753, 23 years before he signed the Declaration of Independence, Benjamin Franklin wrote at length about costs and benefits of German immigration. On one hand, he wrote "few of their children in the country know English." But Franklin also recognized the benefits of immigration, writing that "German immigrants are excellent husbandmen and contribute greatly to the improvement of a country." He concluded that benefits could outweigh costs, under appropriate conditions (Weaver, 1957). American history is replete with cost-benefit calculations about immigration. In some epochs, calculation has led the country to adopt an open door immigration policy, as was the case until 1924. In others, calculations encouraged the country to close its doors and admit few immigrants, as occurred from 1924 through 1965. The 20th Century began with the country in the midst of the greatest wave of immigration in its history. The Century ended in the midst of another period of high immigration. The issues raised at the beginning of the 21st Century parallel the earlier wave: Can the country accommodate numbers of immigrants? Who benefits from the arrival of immigrants? Who is harmed? Can immigrants be absorbed and integrated or are they simply too "different" from the rest of the country? One reason that any discussion of the costs and benefits associated with immigration policy is difficult is that it taps into fundamental American values and often brings those values into conflict with one another. Perhaps the most obvious value at stake is standard of living. Any changes in the volume of immigration are likely to create gains in standard of living for some sectors of the indigenous population and losses for others. A discussion of immigration may also tap into values regarding equity which make us sympathetic toward the plight of people who are politically persecuted. History of conflicts over immigration policy also shows the importance to many people of the perceived effect of immigration on the preservation or modification of American culture. When deeply held values are in conflict and citizens are not in agreement on what goals or outcomes they want to achieve on an important issue, such as immigration policy, policy makers often find themselves gridlocked and unable to define the public interest. On such issues, public officials need a way to hear more than the polarized debate of interest groups. They need a public dialogue in which people look for common ground on which to base action. Another way of thinking about the costs and benefits related to immigration is to consider the ways in which American citizens, organizations, and communities have helped immigrants over the years to become productive citizens. Jane Addams' Hull House in 19th Century Chicago is just one example of such initiatives. Involving community members directly in addressing immigrant needs represents another way of thinking about the cost benefit analysis of immigration. By contributing their toil to the cause and providing immigrants with support and assistance, some communities believe that they can contribute to increasing the benefits that immigrants bring. DELIBERATIVE DIALOGUE When community values are in conflict and when many individuals and groups must work together to solve a public problem, our standard strategies for informing and involving the public--workshops, public hearings, or distributing brochures--don't work very well. …

Immigrant Location Decisions and Outcomes

Abstract: The majority of the latest wave of immigration has gone to only a handful of the largest U.S. metropolitan area. The robust economic performance of these "immigrant centers" has sparked a debate about merits of attracting foreign-born immigrants as part of a strategy to stem population loss and spur economic growth in economically lagging metro areas. However, any policy decisions require a better understanding of the nature and spatial implications of immigrants' location decisions. We employ a nonlinear model that uses two key individual location decision factors to predict the distribution of foreign-born citizens among metropolitan areas at three (U.S. Census) points in time: 1980, 1990, and 2000. The model guides an examination of the consequences in time of spatial distribution of immigrants based on the assumption that location decisions are driven by concentrations of co-ethics more than employment opportunity. INTRODUCTION Throughout American history, immigration has affected culture, politics, and the economy in momentous ways. Essentially a land of immigrants, the US has absorbed repeated waves of newcomers contributing to the country's economic growth, while aspiring to improved quality of life. Immigrants in search of economic opportunity have had a presence in all economic sectors (Winnick, 1990; Muller, 1993). The arrival of immigrants stimulates local housing construction, consumption, and demand for services, as well as commercial and banking activities, which in turn stimulate economic growth. Thus effects of immigration are no different from those of natural population growth (births in excess of deaths) and in-migration (1) from other regions of the country. However, diversity of minds and ways of life accompanying immigration have the added benefits of new market demands for different products and services and new marketable ideas that can contribute to economic diversification of the economy and add to its robustness. An added argument in favor of immigration is that driven to the US by economic aspirations, immigrants may arrive with a resolve to contribute and be rewarded by the market that might exceed that of the native-born population. Researchers recognize the role played by immigrants' personal ambitions and have devised means to measure their entrepreneurship levels relative to native-born Americans (Winnick, 1990; Borjas, 1990). On average, immigrants' drive and place in society lead to a higher self-employment. Muller (1993, 1998) found a positive correlation between rates of in-migration and job growth, as well as a positive correlation between the percentage of the foreign-born and the economic well being of natives. This, in conjunction with work by Richard Florida (2000; 2002) suggesting that the greater the diversity of metropolitan areas, the more attractive they are to certain desirable industries such as high-tech, strengthens the case for beneficial effects of immigration. Such economic arguments have historically garnered support for immigration, but counter-positions exist. Sometimes rooted in xenophobic tendencies, and at other times in fear over job loss and wage deflation, resistance to immigration has been a very powerful political and social force (Simon, 1989; Borjas, 1990; Muller, 1993.) Arguments leveled against unimpeded immigration have nationalistic and economically intuitive appeal, which accounts for periodic moves throughout history to restrict or to selectively discourage immigration. Often, arguments for, or against, immigrants from specific regions are couched in economic terms, with some of the newcomers predicted to become an economic burden and others expected to boost it. During the rise of industrialization in the U.S. in the late Nineteenth and early Twentieth Centuries, for example, immigration helped fuel economic growth by meeting the labor demand of northern manufacturers (Mooney, 1990; Denison, 1962). …