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Dutch disease and the mitigation: evidence from Canadian provinces

Abstract:

This paper evaluates whether immigration can mitigate the Dutch disease effects associated with booms in natural resource sectors. We derive predicted changes in the size of the non-tradable sector from a small general-equilibrium model à la Obstfeld-Rogoff. Using data for Canadian provinces, we find evidence that aggregate immigration mitigates the increase in the size of the non-tradable sector in booming regions. The mitigation effect is due mostly to interprovincial migration and tem...

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Publication status:
Published

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Publisher:
University of Oxford Publisher's website
Series:
OxCarre Papers
Publication date:
2015-01-27
Paper number:
151
Keywords:
Pubs id:
1143661
Local pid:
pubs:1143661
Deposit date:
2020-12-15

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