Suchergebnisse

Purpose– The purpose of this paper is to examine the dynamic relationship among immigration rate, GDP per capita, and and real wage rates in the USA.Design/methodology/approach– The paper implements the Johansen-Juselius (1990, 1992) cointegration technique to test for a long-run relationship; and for short-run dynamics the authors apply Granger causality tests under the vector error-correction model.Findings– The results show that the long-run causality runs from GDP per capita to immigration, not vice versa. Growing economy attracts immigrants. The authors also find that immigration flow depresses average weekly earnings of the natives in the long-run.Originality/value– The authors are not aware of any study on the USA addressing the impact of immigrants on labor market using a tripartite approach by explicitly incorporating economic growth. It is therefore important to pursue a theoretically justified empirical model in search of a relation to resolve on apparent immigration debate.

Prevailing views suggest that short-term, unhedged foreign borrowing and crony capitalism, in combination with a weak financial system and lack of transparency may lie at the heart of the Asian financial crisis of 1997. Although the crisis first began in Thailand, it quickly spread to the rest of the region. While it is important to know the causes of the crisis, perhaps it is no less important to understand the process by which it spreads to other countries. From theoretical considerations trade links should be seen as a relevant and important channel in explaining the propagation of the Asian crisis. This paper empirically examines and analyzes the historical trade pattern among the seven South and East Asian countries to demonstrate how intraregional trade evolved over time. In addition it also provides a formal test of contagion through co-movement in real exchange rates during the pre-crisis and crisis period.