Would Immigration influence Economic Growth? (1 Viewer)

[sk8ie_boi]

In 2007 there is an estimated increase in population of 1.3% from immigration. Migrants are imported into Australia as the economy has a shortage for skilled labour. Such increase in population would directly influence our economy’s consumption and investment functions. When our multiplier adjusts that figure, it would have a strong influence on our economy growth. Therefore, influencing an increase (of 7%) in the prices of the Australian housing markets.

In summing up, immigration would have direct influence on the growth of housing prices in Australia. But my problem with such statement is that I believe although immigration would affect economy growth, but comparing to other factors of economy growth, it is very insignificant.

Please correct me if I’m wrong, but I’m really confused on this subject.

 

[xiao1985]

more immagrants would definitely increase the demand in the housing sector...

i would say other factors would be rather minor (you can say the tendency of building storey'ed buildings caters for higher supply of housing industry, though I would really think that's a minor influence; or increased interest rate to deter people from taking a loan to buy houses)

it is valid to argue other factors should not be ignored... but it's hard to argue immigration has negligible effect.

 

[sk8ie_boi]

You think other factors are minor? But you also need to remember, the population increase is only 1.3%. For those migrants to get a job and therefore eventually having an saving for a deposit would directly depend on the state of the Australian economy. If unemployment was high, and jobs were difficult to find. If interest rates were high, therefore higher mortage. Do you still think those migrants have the power to influence Australia's housing markets? So wouldn't you say, the policy-mix has a greater effect ...

Migrants should have small or no effect on the economy in the short-run, but as for long-run ... it should have an effect through the multiplier. But just how much?

 

[xiao1985]

there you go =)

lots of arguements there... just gotta arrange them into a nice looking essay...

if you are needing statistics, then you may use ABS at your advantage... though i believe a well structured essay beats statistics in every way

 

[sk8ie_boi]

Haha I wasn't planning to write an essay on it .. just dat I had an argument with my dad about this topic. And he thinks he knows alot about it and I want to prove him wrong haha..

 

[xiao1985]

Haha I wasn't planning to write an essay on it .. just dat I had an argument with my dad about this topic. And he thinks he knows alot about it and I want to prove him wrong haha..

* gonk...

reminds me of my conversation with my dad... sigh ~~~ dads...