The Dynamic Effects of Skilled Labour Targeting in Immigration Programs

We consider the impact of the recent trend in immigration policies towards selecting migrants on the basis of skills. The analysis uses an inter-temporal general equilibrium model with endogenous skill formation. The model is calibrated to a steady state benchmark that represents Australia in 2000-2001. We then consider the impact of the increase in skilled migrants of approximately 20 thousand per year, which corresponds to the increase in flows of migrant Professionals in Australia since 2000. We find that this generates substantial crowding out of the higher Education sector in Australia. Moreover we show that, when this shock is anticipated as a permanent policy change, there is very little net increase in the stock of skilled labour due to falling student enrollments of 12%. Paradoxically, in this case, the decline in students increases the number of unskilled workers in the economy such that the ratio skilled to unskilled workers in the economy actually falls and the skill premium increases.Immigration; Human Capital; Computable General Equilibrium Models

Dynamic Adjustments to Terms of Trade Shocks: The USA Productivity Boom and Australia

How has the USA’s “new economy” productivity boom affected Australia? We consider this question using a dynamic multi-sector growth model of the Australian and USA economies. We find that productivity growth in the USA durables sector generates small but important gains to Australia. We find that the transmission of growth is generated through increased export demand for Agriculture. Consequently we find that the USA’s productivity growth tends to favour Australia’s traditional export sectors. Likewise it increases the relative demand for less skilled labour in Australia and reduces the demand for skilled labour and higher education.Terms of Trade; Productivity; Economic Growth; Human Capital; Computable General Equilibrium Models

Dynamic Gains and Market Access Insurance: Another look at the AUSFTA

We use a dynamic computable general equilibrium model to revisit the dynamic benefits of the Australia-USA Free Trade Agreement and, in particular, to evaluate the insurance value of this agreement in the face of regional and global trade wars. The insurance benefits are quantified by comparing the status quo against alternative scenarios where some or all regions raise tariffs by 10 percent, both permanently and temporarily. These insurance gains are found to be as much as four times larger than the traditional status quo efficiency gains.Trade policy; Computable General Equilibrium; Human Capital; Dynamics

Analyzing Economy Wide Effects of Trade Liberalisation on Vietnam using a Dynamic Computable General Equilibrium Model

Since its reform process in the late 1980s, Vietnam has emerged as a rapidly growing economy with growth rates surpassing its more developed ASEAN neighbours. This paper aims to consider the economy wide impacts of trade liberalisation on Vietnam. We approach this by way of multi-region, multi-good, dynamic growth computable general equilibrium (DCGE) model. We find that trade liberalisation has caused a large fall in wage inequality thus increasing the welfare of unskilled workers in Vietnam. There is also evidence of a shift away from agriculture towards low-tech and intermediate manufacturing sectors. Additionally, there are significant gains in terms of large physical and human capital accumulation.

The International Effects of China's Growth, Trade and Ecucation Booms

China’s international trade flows have increased by 500% since 1992, far outstripping GDP growth. Likewise tertiary education enrollments have increased by 300%. We simulate these changes using a multi-sector growth model of the Chinese and USA economies. A decade of trade biased growth in China is found to have a large effect on the USA economy – raising GDP approximately 3-4.5 percentage points. We also show that the trade bias in China’s growth accounts for more than half of the observed growth in tertiary enrolments in China. In contrast neutral growth has practically no effect on USA incomes or China’s stock of skilled labour. Finally the simulations reveal that China’s education boom per se has practically no long run impact on the USA economy. The results thus indicate that the pattern of productivity growth in exports sectors, as might be caused by falling trade costs, has been critical in transmitting benefits of Chinese growth to the world economy. They also point to an important link between falling trade costs and human capital formation.Economic Growth, China, Human Capital, Trade Costs

Impact Of Farm Size On The Bidding Potential For Agricultural Land

The size structure of farms, the control of farming, and the future of the family farm are issues that are all related to the ownership and control of a unique rural resource--land. The future complexion of the U. S. countryside is intimately tied to the ability of different economic groups to gain and maintain control of the land base. Continuation of past trends in farm enlargement and off-farm migration would vest the control of the farming community in fewer and larger operating units

Evolving an Effective Electronic Commerce Strategy: A Supplier's Perspective

This presentation illustrates the development of an IS and e-business strategy at HP Bulmer in the 1990s to respond to demands from their major customers for e-business trading. It outlines how, based on a sound technology strategy, this drinks company was able to respond proactively to the requirements of the major supermarkets to use EDI for a range of transactions. Then, with Whitbread, one of their major on-trade customers, the comapny helped pioneer the development of co-managed inventory (CMI), bringing trading benefits to both customer and supplier

The Review of Economic Performance and Social Progress 2002: Towards a Social Understanding of Productivity

In this chapter, Richard Harris points out that a traditional view has been that there is an inherent conflict between economic efficiency and social equality, a view neatly summarized in the title of Okun's famous book, Equality and Efficiency: The Big Trade-off (1975). This view gained renewed currency in the policy debates of the 1990s, as commentators contrasted the economic performance of Europe and the U.S. in that decade. This view has been challenged both by cross-national empirical studies and by theoretical advances. Recent research seems to suggest that there is no efficiency-equity trade-off and that social policy and greater equality may actually contribute to higher productivity growth. Richard Harris surveys two streams of recent research that point in this direction. The chapter also examines new theoretical literature, especially the new endogenous growth theory that suggests that increases in inequality can hurt growth.Equity, Efficiency, Productivity, Labour Productivity, Labor Productivity, Growth, Income, Inequality, Equality, Social Policy, Education, Health, Welfare, Redistribution, Social Cohesion, Cohesion, Investment, Innovation, Competition, Living Standards

Computer Lab Technology to Support Information Systems Programs

For a number of years the Annual UCLA Survey of Business School Computer Usage (begun in 1984, published in 1985) benchmarked information technology assets available to business school students. The survey was cosponsored by the AACSB for a number of years and was used by schools of business to judge the level of technology that supported students. The last of these surveys was in 1999. The need to document a broad sample of current information technology available to students is as strong today as it has been in the past. The difference today is in the types of technology used and the programmatic goals supported by the technology. The UCLA survey of computer resources focused on computers in open labs, staffing for student labs, dollars spent per student, and similar measures. Today a focus is needed that describes the types of resources used and staffing to assist students and faculty in specialized circumstances. The survey developed here will address the information technology needs for skills outlined in the IS2002 model curriculum