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The Effects Of Immigration On New Zealand’s Economy

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Question:

Discuss about the New Zealand Economy ?
 
 

Answer :

Introduction:

Immigration is regarded as a complex phenomenon that can have serious impact on the economical growth perspective of a particular country. Historically, immigration has been a prime cause of concern for the New Zealand during the time British sovereignty was announced in 1840 (Nijkamp, Poot & Sahin, 2012). Over the years, number of immigrants has entered into the New Zealand economy increases at a rapid rate. Total Immigrants in New Zealand is about one quarter of the total population for the country. The no. of immigrants in New Zealand is increasing with the passage of time and this is increasing the net loss of New Zealanders. It has been assessed that impact of immigration flow is extremely complex process, as it can have both positive and negative impact on the economical condition. Immigrants tend to utilize resources of a particular country in order to lead a healthy life. As a result, it minimizes the job opportunities and increases level of competition for the domestic people. For that reason, it can have adverse impact on the development of local communities.

On the other hand, increasing rate of immigration in New Zealand brought much cultural diversity, many languages and many people but at the same time it is having a significant impact in many fundamental ways; socially, demographically, economically and environmentally (Kalton, 1983). That is why the question of how this immigration affects New Zealand becomes very important from various perspectives. Moreover, increasing rate of war and violence internationally has enhanced the significance of immigration issue in recent time. For that reason, the research proposal would focus on different perspective of immigration in order to understand the kind of impact in can have on the economical condition of New Zealand. This research proposal will take the economic perspective of the same because the economic perspective is the one, which is gauged more frequently and is significant (Gibson, McKenzie & Stillman, 2009).

In this research study, the prime focus would be on capturing in-depth information about the immigration issue in the New Zealand economy. The research proposal will include the impact on the economy of New Zealand because of the Immigrants. For the key findings the projects and data from the year 2005 to 2010 is considered and conclusion will be based on this period of study. The study will focus on specific time span, as it will help to cover all aspect of the research topic. The study would provide background information regarding the process immigrants have entered in the New Zealand economy. Moreover, the study would also focus on assessing the current number of immigrants present in the New Zealand market (Kelsey, 2015). The study would also focus on developing effective methodology for capturing in-depth information about the kind of impact immigrants have created on the economical condition of the New Zealand. The research will synthesize the research gaps and will address the shortcomings of the previous researches done in the context so far. The impact of immigration whether positive or negative will be judged with the help of outcomes of economy in New Zealand.

Background of the Research Topic:

The exodus of civilization has been associated with many reasons such as political, social, economic, for asylum. These mass movements have wider implication on the economic and social indicators. The USA, UK, had the supportive immigration policy in the early industrial revolution, whether today we can see these countries are much prosperous than any other country in the world. Immigration brings new and motivated workers who can reinvigorate any sabotage economy (Bedford & Poot, 2010). In fact, increasing war and domestic violence have induced all the prime economies to develop different supportive rules and regulations for the immigrants so that they can able to lead a healthy life. For instance, countries like Australia have seen huge increase in the rate of immigrants over the past few years. As a result, it has induced Australian government to invest more on the well-being of the immigrants in an effective manner (Genc et al., 2012). On the other hand, New Zealand is among the popular destination for the tourists, as people from different parts of the world have come on living their entire life. The peaceful and healthy atmosphere has allowed all the immigrants to fulfill all the daily requirements in an appropriate way.  

New workers can expand economic activity of a country, whether a country like Japan has been grappling with the problem of old economy where immigration is the cure that can rejuvenate it. The immigrants are motivated they do their best to eschew the criminal activity because they are always concerned about their objectives. Immigration brings new cultural diversity which brings cultural harmony and social integration that are fundamental for the development of economy (Cornelius, 2004).

Besides immigration has some pernicious impact on a country, whether it can encroach the social fundamental aspect of a society to forcefully compel a society to adhere to foreign culture as the British had done with many colonized countries. It can jeopardize the native society as the native of New Zealand is at the brink of extinction, however the native of New Zealand only account for around 10% of the total population. When the influx of immigrant is at high rate then it can increase the social hostility and disintegration of society. It creates an enormous drain on natural resources of a country and it also paves the way for inequality in economic distribution of resources (Cornelius, 2004).

The rate of immigration has increased at a rapid rate in the New Zealand market during early 2000 to 2006. As a result, it has enhanced the proportion of migrant households captured by the immigrants in the New Zealand market. The government of New Zealand has developed Immigration Act law in 1987 in order to handle all the challenges associated with the foreign people entering into the economy effectively (Ortega & Peri, 2013). Moreover, it has also developed the law for ending the preferences for migrants from Europe, Britain or Northern based on their race. In fact, it has focused on segregating all the immigrants on their personal qualities, skills and potential contribution to the New Zealand economy. The law has highlighted the fact that inclusion of immigration based on skills and knowledge can enhance the over economical condition. The New Zealand immigration system has also focused on introducing a point based system so that it can able to select appropriate individuals. However, New Zealand government has revised the regulations associated with immigration in 2006 so that it can able to provide wide variety of ethnicity.  

Phillips and Hearn (2013) have highlighted the fact that number of immigrants entered into the New Zealand economy increased in continues manner. At the early 90s, around 25000 people have entered into the New Zealand economy, which has increased to the level of 35000 within 4 years time span. However, government of New Zealand has focused on including skilled individuals so that they can provide positive impact on the overall development perspective of the community. New Zealand government has also focused on including people with the proficiency in English language so that domestic people does not have to face any challenges in communicating with the immigrants. It has been assessed that effective utilization of communication strategy is essential for avoiding any type of unnecessary consequences. Chung and Tung (2013) have highlighted the fact that differences in languages can have major impact among the coordination of all the people living in the same community. Many instances have been identified where immigrants have developed their separate community for leading their lives in appropriate manner. This differences become huge in case of the including indigenous people within the community. For that reason, proper identification of immigrants has become extremely important for creating positive impact on the economical condition.    

In recent times, New Zealand government has developed a specific plan of including 45,000 immigrants per year, which is around 1.5% of the total population. However, recent trends have also highlighted the fact that huge number of New Zealand residents has moved to other countries for better job and life. For that reason, net population of New Zealand was actually declined for the past few years (Parker & Steenkamp, 2012). Overall, New Zealand consists of huge amount of foreign-born citizen. In 2005, around 20% of the total New Zealanders was born outside of the country. For that reason, New Zealand government has issued work permits for around 100,000 immigrants so that it can able to create positive impact on the overall economical condition of the economy (Peri, 2012). On the other hand, USA has enforced New Zealand to accept 750 refugees every year for providing proper living condition to the people. In 2007, Immigration Advisers Licensing Act was developed with the objective of handling all the offshore activities in an appropriate manner. It focuses on analyzing all the industry standards in including immigrants within the economy.   

However, Law, Genç and Bryant (2013) have highlighted the fact that increasing rate of immigrants created challenges for the economy in providing proper job opportunities. It has been assessed that selection of immigrants based on skills and education has created extremely competitive job market in New Zealand. As a result, domestic people are facing lot of problems in achieving desired jobs in the market. As a result, New Zealand government has focused on providing additional benefits to the local people by restricting the number of immigrants can be included within  a particular organization. Many studies have supported the government regulation of implementing restriction on the immigrants for ensuring proper lives to the domestic people. In 2009 Immigration Act, New Zealand government has emphasized on competing with all other top nations regarding the skilled and talented immigrants it will have to include for moving the economy forward. In fact, it has also initiated a bill for smoothing the entire immigration process so that local people does not have to face any challenges to perform all their responsibilities to the highest manner. On the other hand, Human Right Commissions have enforced all the countries to include all types of immigrants so that people with lesser skills and knowledge can able to achieve proper opportunity to lead healthy lives. James (2015) have mentioned the fact that all the countries will have to take responsibilities to provide equal opportunity to all its members. Otherwise, it can create major conflict within the community, which eventually will create adverse impact on the economical growth perspectives. Moreover, it will divide the entire economy into different parts that would create unnecessary challenges on the economic development perspective.

Stillman, Gibson and McKenzie (2012) have highlighted the fact increasing rate immigrant in the New Zealand would create challenges in the housing department. It has been assessed that majority of the local people in New Zealand lives in their own house. However, increasing number of immigrants will create crisis for the land in a major way. On the other hand, increasing population would influence economy to produce more for fulfilling all the requirements in an effective manner. As a result, it would allow businesses to sale larger amount on the market, which will create positive impact on the overall economical condition. On the other hand, inclusion of skilled and knowledgeable immigrants will help the economy to handle the challenges associated with the fulfillment of skilled labor in the market. For that reason, it would also expect to create positive impact on the economical condition of the community. Thus, inclusion of immigrants can have both positive and negative impact on the economical development perspective. Therefore, government of New Zealand would have to be extremely careful in handling all the activities related to the inclusion of immigrants for moving towards the right direction (Pool, Dharmalingam & Sceats, 2013). For that reason, the study would focus on including all aspects related to the immigration for analyzing the amount of impact it can have on the economical development perspective. The study would also focus on identifying the literature gap, which would eventually help the study to move towards the right direction.

 

Immigration Impact on New Zealand population:

According to Kennedy et al. (2015) immigration have direct impact on population growth perspective of an economy. However, New Zealand has experienced different circumstances regarding the inclusion of immigrants due to fluctuating international movement of New Zealanders. It has been assessed that huge number of New Zealanders has established themselves in the foreign countries, which has eliminated the impact of including immigrants to a major extent. The fluctuation in the New Zealand’s economy can be seen in the following figure:

                                                                               Figure 1: Fluctuation in New Zealand’s population growth

                                                                                       (Source: Dungan, Fang & Gunderson, 2013)

From the above figure, it can be assessed that overall population growth of New Zealand has seen lot of ups and down historically. In fact, majority of the time more New Zealanders have left the country compared to the number of immigrants have entered into the economy. As opined by Kelsey (2015), international migration has created a major impact on the population of New Zealand. About one quarter of the population of the country is foreign born, which shows that the immigrant population and the New Zealand born population are rising in the same level of the country. According to various analysis it can be seen that the raise in the population of New Zealand born population is 15%, whereas, the raise in the population for immigrants is about 23%. However, increasing war and violence in different countries have enhanced the rate of immigrants for all the country. As a result, it has also enhanced the overall population level of New Zealand at a rapid rate in recent time. For that reason, it can created different types of challenges for the New Zealand’s government in order to handle the entire population in an effective way. According to Law, Genç, & Bryant (2013), the economic benefits received from the immigrants in New Zealand is balanced. He states that the population growth does not necessarily aim at income or productivity growth of the economy. The economic growth has slowed down to a considerable level, which states that the productivity of the economy is falling. In fact, extreme increase in the rate of population growth can create different types of challenges in the path of economic growth perspective of an economy. Increasing population might create excessive supply of talented workforce, which would eventually increase the competition level in a major way. As a result, government often tries to initiate different reservation rules for the local communities, which can have major adverse impact on the overall cohesion level among all the people within the community. As a result, it can reduce the speed of economic development of an economy in a major way.  

Halkias et al. (2016) have mentioned the fact that it is necessary to distinguish between long-run and short-run perspective in order to understand the impact of increasing population on the economy. Majority of the time, it has been assessed that short-run and long-run impact varies from each other. It has been highlighted that short-run fluctuation in the population can create permanent disadvantageous position for an economy. Moreover, economy will also have to differentiate the micro and macro effect of increasing population on the economic development perspective. For instance, immigrants have created lower wages in the short-run, whereas it has increased the labor market flexibility in long-run. In short-run, inclusion of immigrants has created discrimination in the market. However, it has increased the geographical and social clustering in long-run, which would eventually create positive impact on the economical development aspect of New Zealand. In addition, Gibson and McKenzie (2012) have emphasizes the fact that inclusion of immigrants will allow New Zealand’s government to handle all the challenges associated with the public debt, foreign debt and economies of scale in an effective manner. Moreover, it will also induce technological changes within the economy. As a result, it would help to handle increasing demand of the market in long-run, which essential for maintaining market equilibrium.

Immigration Impact on New Zealand’s market needs and wants:

As stated by Akbari & MacDonald (2014), with a heavy increase in immigration, both assisted and unassisted, there is a raise in the demand of goods and services, and full employment, which provides a good deal of the production that is asked for. It seems quite clear that the demand effects of a rising population would complement a reduction in unemployment level of the country. Immigrants add to the sustainable rate of productivity growth. With the rise in the population structure of New Zealand, there has been a considerable rise in the demand for goods and services in the economy. Yet, thus might shift the resources of production away from investment, that would have boosted long term prosperity. Hence, it could be states that this might harm the methods of coping up with the pressures of growing population of the economy (James, 2015). Moreover, increasing number of immigrants will also create major impact on the cultural aspect of the economy. As a result, it will affect the tastes and preferences of the people. Moreover, higher number of immigrants can have major impact on the lifestyle of the community in a major way. As a result, it would create demands for new products and services within the community, which will also create positive impact on the new business perspective. Therefore, it can have positive impact on the economical development perspective of New Zealand. On the other hand, Ward (2015) have mentioned the fact that increasing diversity within the economy would also influence foreign investors to invest more on the economy, which will create long-term positive impact on the economical condition.

As opined by Seetaram (2012) immigration can enhance the economic growth in three prime ways. Firstly, acceleration of convergence to the growth path in long run through increasing the openness of the host economy and also increasing the probability of demand for new investment. Secondly, economic growth can be achieved through promoting consequential long-run changes and innovation in total factor productivity. Thirdly, the study has mentioned that economic growth can be achieved through the enhancement of the operational efficiency in both long run and short run. It can actually boost total factor productivity of the economy in a major way. The prime impact of immigration on the economic growth is through the affect of steady state, as it creates direct impact on the capital and labor mobility aspect. As per the article by Akbari and MacDonald (2014) migrants are more likely to cluster in the prime areas of the economy which might enhance the growth rate through the agglomeration effects. For that reason, all the prime cities of New Zealand is expected to have more production opportunities in recent times. Therefore, it would also likely to create positive impact on the economical development aspect of New Zealand. The total factor productivity growth and macroeconomic causality analysis of net immigration has established the fact that immigration can increase the needs and wants of the market (Cadena & Kovak, 2016). As a result, it would also likely to increase the rate of economic growth in the New Zealand market in an appropriate manner. Moreover, including people from different parts of the world also can create major positive impact on the technological enhancement perspective of the economy. It has been assessed that inclusion of immigrants allows economies to increase the technological efficiency in major way.     

 

Impact of immigration on New Zealand’s labor market:

Impact of immigration on the labor market is concerned with the wages condition rather than unemployment rate or labor force participation. For that reason, the prime focus would be on the wage rate, skills and knowledge level of the immigrants. Moreover, economies will also have to assess both long-term and short-term impact of immigration on the labor market (Boubtane, Dumont & Rault, 2015). The immediate short-term effect of immigration on the overall wages of the current workers depends primarily on the extent to which migrants can outclass domestic workers in terms of skills and knowledge. If skills level of the migrants can be substituted with the skill set of domestic employees then immigration is likely to increase, which will reduce the wages in short-run. Thus, it will create adverse impact on the economic growth perspective in short-run. Moreover, decreasing rate of wages will also create challenges like partially unemployed and increasing competition in the labor market that would drawn the economy even lower. According to Kelsey (2015), success of full employment led to frequent claims that the labor was in short supply, thereby posing the immigrants as desirable. It shows that more immigrants are favorable for the economy. But, this even poses a threat for the economy, as the raise in the population of immigrants results in the raise in the demand for goods and services soon after arrival. Thereby, the economy remains in shortage of labor, soon after the arrival of the immigrants. A successful settler economy attracts more immigrants towards itself in its boom phase. Thus raises the expectations of the immigrants towards better standard of living, full employment and high wage jobs. This results in the attainment of high degree of government regulatory intervention to keep economic activity high while preventing domestic demand spilling over to create balance of payment crisis.

On the other hand, the impact of immigration on the increasing demand and supply of labor market is another crucial factor that New Zealand’s government will have to evaluate in an in-depth manner. For that reason, proper evaluation of the labor force participation and unemployment rate have to measure in a perfect manner. Moreover, changes in the labor market structure are another crucial aspect that can occur due to the inclusion of too many immigrants. Many studies have established the fact that impact of immigration on New Zealand’s labor market can be seen primarily on the adaptation of migrants rather than the impact on the local people. In fact, business cycle study of New Zealand has established the fact that net immigration has generated a net demand effect in short-run, which has potentially created lower unemployment and higher inflation. For that reason, Smith (2012) has concluded that there is a specific danger that a deliberate pro-cyclical immigration policy might exacerbate the overall amplitude of the business cycle.

Conversely, Bassett (2013) has highlighted a range of immigration scenarios that can have major impact on the economical development aspect of the New Zealand. It has assumed that New Zealand would have around 15000 net flows of immigrants every year. As a result, it would increase the total population of New Zealand by 7% in case there is no inclusion of migrants. Therefore, it would create additional supply in the labor market that would minimize the real wages. Therefore, it is likely to create adverse impact on the overall economic development perspective. However, inclusion of immigrants will increase the population level that would also increase the overall needs and wants of the market. Therefore, it would provide more opportunities to all the business entities to enhance the revenue level in an appropriate way. As a result, it will create positive impact on the current economical condition of New Zealand. Thus, it can be assess that inclusion of immigrants can have both positive and negative impact on the economy. For that reason, the ultimate impact will depend on New Zealand’s government labor market policy. Belot and Hatton (2012) have assessed earnings of migrants compared to the earnings of the local people, which will highlight earning of human capital and other characteristics. The study has established the fact that New Zealand’s immigrants have relatively larger wage disadvantage and also has smaller growth in the wage rate. Therefore, it has highlighted the fact that immigrants have higher probability of facing different types of harassment or disadvantage at the workplace, which is not a good sign on the economic development perspective.  

Fiscal impact:

According to Banks et al. (2012), fiscal impacts on immigration heavily depend on the overall characteristics of the immigrants and the local population. It will decide the way immigrants will create impact on the overall economical condition. It has been assessed that fiscal impact consists of adding a demographic profile of the entire population prior and after an immigration influx with the per-capita cost of providing transfer payments and public consumptions. On the other hand, tax revenues are calculated based on the consumption and income patterns of different types of geographic group. Many studies have highlighted the fact that fiscal impact of immigration is always positive, as it provides government the opportunity to collect more tax revenue or social security payments. Moreover, the magnitude of positive impact increases over time. For instance, arrival of immigrants on Sweden had enhanced the net burden on the overall public sector budget. However, the differences with other type of immigrants decline over the years. Chung, Rose & Huang (2012) have highlighted the fact that age profiling of the immigrants is also a crucial factor on understanding the fiscal impact. It has been assessed that there is strong link between major public expenditure and age, which would also create impact on the total expenditure of the economy. As a result, it would also create major impact on the economical condition of New Zealand. One of the prime concerns with the population ageing is the increasing transfers of the current income needed to the consumption of fund.

Fairburn (2013) have mentioned the fact that immigration is an alternative strategy to tax rates or higher savings in ageing communities. Hence, immigration can certainly slow down the ageing of the entire population of the economy. In fact, if government can initiate proper strategy of including immigrants, it can enhance the total number of young age population in a major way. Therefore, it would also more likely to create positive impact on the economical condition in New Zealand. New Zealand Immigration Service (NZIS) analyzes fiscal impact of immigration at both sub-national and national level. They have concluded that majority of the migrants differentiate both by the duration of residence and region of residence, the age adjusted per-capital net fiscal impact was positive. As per the article by Gonzalez and Ortega (2013), immigration policies might create impact on the fiscal balances with different types of limitations. Firstly, there is no assessment of emigration on the New Zealaners and previous immigrants. In fact, prime focus was made on the gross inward migration rather than net migration. Secondly, fiscal impact of immigration has not accounted flow of effects of migration on the economy.

As highlighted by Bowman and Conway (2013) migrants show expenditure characteristics, which is similar to the people born in New Zealand within same income category and age. It highlighted the fact that differences between sub-groups of immigrants in the fiscal impact are completely due to the dissimilarities between such groups. Specifically, public services are not linked with the immigration status. However, majority of the time limited information were available regarding the exact amount of fiscal impact that immigrations can create within an economy. For that reason, majority of the studies have assumed many things, which might have affected the ultimate outcome (McKinnon, 2013). In addition, policies and procedures regarding the expenditure nature of the government changes with time. Therefore, it is expected that it will also create variation on the overall fiscal impact of the economy (Cingano, 2014). Therefore, it cannot be said that inclusion of immigrants will definitely create positive impact on the economical development perspective of New Zealand.  

Impact of immigration on trade and international relations:

Number of recent studies has highlighted the fact that immigration can also have positive impact on the international trade between home and host countries. Two factors can be upheld as prime reason of increasing international business opportunity between two countries. Firstly, immigrants always prefer products from their home country (Bowen & Wu, 2013). It not only matches with the tastes and preferences of the immigrants but also creates strong emotional bonding. As a result, they induce more organizations from home country to establish its presence in the New Zealand market. It has been assessed that products and services of home country easily matches with the needs and wants of the immigrants. As a result, they tend to purchase more, which eventually increases international trade and business opportunities. Secondly, it also allows host country to minimize transaction cost associated with the bilateral trade.

Moreover, it also allows organizations from host country to understand the contract and languages of the home country organizations in an effective way. Therefore, it will create positive impact on the development of proper international relation that will create positive impact on the economic development perspective. According to Nathan (2014), it is important to analyze the economic impact of import and export in an in-depth manner. It has been assessed that elasticity of the effect of immigration on imports is greater than the elasticity of the effect on import. Survey has established that migration from Taiwan to Canada had enhanced impact on imports into Canada compared to Canadian exports. For that reason, migrant flow composition is crucial at the time of investigating the relationship between international trade and immigration. It has been assessed that impact of the average new immigrant on imports is more than three times of exports.

On the other hand, development of strong international relationship is crucial for the economic development perspective. It not only provides new market for the organizations to enhance the revenue level but also can help on the crisis situations. Therefore, all the developed countries always try to maintain strong relationship with other economies in order to handle all the challenges related to the economic development in an appropriate manner. As mentioned earlier, short-run macroeconomic effect has highlighted the fact that immigration would definitely increase aggregate demand at a rapid rate (Cully, 2012). As a result, it will also provide larger market for the organizations for both host and home countries. Now, increasing business opportunity will have direct impact on the economic enhancement perspective of New Zealand. Thus, it can be mentioned that inclusion of immigrants will help New Zealand’s government to maintain strong relationship with others. However, deeper investigation is required to estimate the exact impact strong international relationship would create on the economic development perspective (Borjas, 2015). For that reason, New Zealand’s government will also have to analyze the factors like changing demands and purchasing power of the customers. It has been assessed that price of majority of the foreign products will be higher compared to the host country products. Therefore, it can restrict immigrants at the time of purchasing home country products. Hence, it would reduce the business possibility in a major way. On the other hand, living in different cultural environment can also change the taste and preferences of the immigrants, which would create adverse impact on the international trade development perspective (Foged & Peri, 2016). For that reason, specific rules and regulations will have to be initiated by the government in order to create maximum impact on the economical condition.  

Impact of immigration on New Zealand’s inequality, social cohesion and crime:

As per the article by Ward and Liu (2012) social cohesion is an extremely factor than ensures smooth conduct of all the activities within the economy. Like many other countries, the development of explicit measure of social cohesion is at the primary level in New Zealand. In fact, it has emerged as one of the definitional issues for the past few years. New Zealand is regarded as the socially inclusive society where all the policies for immigrants need to be analyzed in terms of specific elements including participation, inclusion, legitimacy and recognition. It is widely accepted that strong social cohesion majorly contributes to the better economic results. However, maintaining social cohesion with the immigrants is not that easy. It would have to assess the factors like low unemployment, low inequality and low crime in order to maintain proper social atmosphere (Fry, 2014). It has been assessed that unplanned inclusion of immigrants can have huge amount of adverse impact on the social cohesion perspective. Specifically, when countries have included indigenous immigrants, they have faced huge problem in leading a normal life in the developed European economy. Majority of the cases, indigenous people have developed a separate community for themselves, which has eventually created adverse impact on the economic development aspect.

However, New Zealand’s government has developed proper plan for including specific individuals within the economy in order to avoid any unnecessary consequences within the community. For that reason, it had included people with specific skills and knowledge and has the capability to mix with the local people in an appropriate manner. Moreover, it had focused on maintaining the equality perspective in an effective way. In fact, it has initiated different legislative rules and regulations that would ensure all the immigrants do receive proper opportunities to lead their life within the host country.  Docquier, Ozden and Peri (2014) have mentioned the fact that inequality is the prime cause that can create adverse impact on the social cohesion aspect. It often creates dissatisfaction and a sense of insecurity within the mind of immigrants. It leads to different types of unwanted incident within the community, which eventually reduces the pace of economic enhancement process. However, New Zealand has maintained clear rules and regulation for a long period of time for avoiding any presence of inequality. In fact, it also had induced different surveys to have continues tract on all the incidents happening on the community (Steinhardt, 2012). Historically, New Zealand is regarded as one of the most peaceful country, which is far away from any violent or unwanted situations. For that reason, it can be mentioned that New Zealand’s government has able to maintain all the challenges associated with the immigration process in order to create positive impact on the social cohesion. As a result, it has allowed New Zealand to create positive impact with the inclusion of immigrants on economic growth perspective.

Literature gap:

The discussion has highlighted the fact that immigration is one of the prime concerns of New Zealand government in order to progress continuously. The above study has mentioned that inclusion of immigrants can have both positive and negative impact on the economy. In fact, the impact can differentiate in long-run and short-run situation. For that reason, government has to initiate different strategies so that it can curve out all the challenges in an appropriate manner. For that, it is necessary to maintain continues study of the market. Otherwise, it will be very difficult to assess exact situation. However, there is no clear cut solution by which immigration can be used in a positive manner for the economic enhancement process. In addition, economic and market situation in New Zealand is changing continuously, which will create differentiation regarding the impact of immigration of economic situation. For that reason, the study would try to capture all the current available information to provide a practical aspect to the research objective. It would also focus identifying different variables related to the research topic, which would provide a clear idea about the exact amount of impact immigrants could have on the economical development aspect. The study would also focus on analyzing all the collected information in an in-depth manner to fulfill all the research objectives effectively. Moreover, it would also focus on identifying the possible future impact that immigration can have on the new Zealand economic development perspective.

 

Research Methodology

4.1       Research Question

The research proposal will outline the below question for research and will try to analyze the answers to each of them and will quantify the impact of Immigration of the Economy of New Zealand.

What is the effect of Immigration on the economy of New Zealand?

What are the impact of the immigration policies on the Economy and how the same can be beneficial for the Economy as a whole?

4.2       Research Concepts and Variables:

The concept and objective of the research is to underline the positive or negative contribution of the immigration to the economic outcomes in New Zealand. The variable involved in the research will be the measures of the economic impacts such as Rates and Wages, Net fiscal costs, Unemployment, Housing, Technical changes, Gross Domestic product. The variables considered for this research proposal are as follows:

  1. Labor force participation and Market integration
  2. Labor productivity and Employment rate
  3. Occupational Level
  4. Educational Level
  5. Geographic Mobility
  6. Wealth
  7. Housing impacts
  8. Technological Changes
  9. Impact on Trade and Tourism
  10. Impact on Fiscal cost and Fiscal Revenue
  11. Impact on Gross Domestic Product

Research Design: Sources of Data and Data collection

The research will conduct a literature review using secondary data and will analyze the market efficiency and the impact of immigration on the Economy of New Zealand and compare the economy with and without immigration. It reviewed the real impact of immigration on the Economy of New Zealand.

The research will adopt case study strategy to analyze the impact of immigration on the Economy of New Zealand from various perspectives (Bedford & Poot, 2010).The movements in Fiscal revenue and the change in Gross Domestic product per capita in relation to immigration are also studied to determine the effects of immigration on the market and economic aspects. Reasoning method will be deductive as the research begins from a very broad idea that impact of immigration on the Economy of New Zealand is positive to market efficiency and is favorable for the country as a whole.

The main source of secondary data will be books, journals, e-sources, articles, etc. The primary data is collected by the researcher by analyzing the movement of GDP before and after the immigration and taking into account the immigrant’s policy and the increase and decrease in the number of immigrants. Change in Housing prices, Labor rate changes and change in net Fiscal cost will help to understand whether the impact of immigration on the Economy of New Zealand is positive or negative (Aghion & Howitt, 2009).

Data collected from demonstrating economic prices and market behavior will be analyzed by the researcher in comparison to the literature review. Analysis will be done using correlation technique relevant to the impact of immigration on the Economy of New Zealand. The researcher will develop graphs, charts and diagrams from secondary data collected for analyzing the movement in the economy of the Country (Chapman & Cobb-Clark, 1999).

Analysis of Data:

Research and development is very expensive, especially in analyzing the economic perspectives of the process. The policy makers should make an effective policy (White, 2014). The government should focus on the actual cooperative activities rather than focus on the international agreements. They should project the activities counted from the bottom to up rather than believing on the one-time report of agencies.

The analysis of data reveals that the immigration has made a positive contribution to the various economic outcomes and the negative impacts of immigrations are negligibly low such as increase in net fiscal costs, increasing unemployment etc. The integration of the immigration is found to be successful in the country (Black, 2011).

The immigrants are residing in New Zealand for more than decades and the outcomes of labor market because of the same are predominantly positive. There are significant evidences of the fact that immigration leads to an increase in both inbound and outbound tourism and net fiscal impact of immigration is also positive. The impact of immigration on housing and technological changes is found less conclusive and the same involve speculation.

Additional immigration in the country suggests increase in the Gross Domestic product per capita and the converse of the same is also true to a greater extent.

 

Discuss: Ethical Considerations

Research ethics in qualitative research starts with the presumption that the research process is the collaboration between researcher, participants, and context. At the same time, the researcher recognizes that she or he retains power over the data collection process, and the analysis and presentation of results (Zimmermann & T K Bauer, 2002).

The research evaluates various methods and ethics that are applicable to social research and that encompasses the qualitative method of research. The main basis for the problem is what to do and what not to do in the data collection for qualitative research by the researchers. This is done with the intent to inform the participant in the research about the topic of study and will also demonstrate various steps to be taken to safeguard the privacy of the researchers and respondents (Winkelmann & Winkelmann, 1998).

The process of data collection will also focus on the limitations of the consent in the evaluation and will dictate the advantages of qualitative research in the research process. Meanwhile, the process of data collection will completely describe the respondents from the beginning to the end and will answer various questions that the researcher came across during the process of research. This will help the researchers to focus on the audience and on the person for whom the research is written (Baas & Brücker, 2010).

The Research will avoid unethical practices of the data collection process by the researcher. The research will motivate various researches to consider and elaborate the relevance of the further research on the topic to cover a large business context. The available researches on the subject reveal the contribution of data collection in order to unique ethical challenges of protecting privacy, minimizing harm, and respecting the shared experience of others (Steen, 2015).

 

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OR

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