How Did Immigration Contribute To Economic Growth

Essay, Research Paper

Immigration and Emigration

Population changes continuously over the past in the Canada. There is two type of changing in population. One of them is the natural increase since the New France is become the colony in 1665. The other type is immigration from or emigration to other countries. People immigrate to Canada because there is an advantaged condition than their own country to induce them. Canada has fertility natural resources that are fur, fishery and timber. In the earliest of Canada prior to 1850, agriculture is the main sector that is about 60% in the Canada. However, in the late nineteenth century, the natural resource of the timber is declined. Besides, the growing up of the industrial development such as irons and steel. Many immigrants move to Canada lead the real wages to fell, then many Canadian move to United States. After the First World War, there is a wheat boom on that period, which attract more people to come to Canada. The demand for the manufacturing goods that relates to the wheat is increase after the war; therefore, it also contributes to the development of the industrial. In this period, the development is not stimulate by the natural resources, but the political revolution, new technical, and the open of the new market. The immigration is relevant to the economic and political problems in Canada. Therefore, the changes of the population can be contributed to the economic activity. The different patterns of living styles and behavior from the immigrants also influenced the economic development. Therefore, it is important of population changes.

There was a brain drain to the United States between 1881- 1901. The net immigration between this period is negative that means the emigration from Canada is so high although the immigration is high. Although, there are some skilled labors immigrate to United States, the high immigration also increased the labors supply with lower wages than domestic labors. The immigration also one of the factor of developing of the economic in the Canada.

In the period of 1881- 1901, the primary sector of agriculture continuously declined because the exploited of the natural resource such as timber that is the agriculture product was declined. The demand for labor force of agriculture is decreased, therefore the unemployment rate is increased. The important of agriculture has continuously declined, but the non- agriculture employment that associated with urbanization has increased. The labor flowed to the manufacturing and tertiary sector that are growing. Besides, the immigration continuously increases, the lack of opportunity in the home country tend to immigrate to United States that have. Since the immigrants increased the labor supply, but the demand of the labor is slowly. Therefore, the real wages in Canada fell. The immigrants often work for lower wages than the native born Canadians. Besides, the demand for the skilled labor in U.S. is increased rapidly, so there would be a different in real wages between U.S. and Canada. The real wages in U.S. is higher than Canada. This induced native-born Canadian to move to United States. Since the urbanization is grew up, many agriculture labors move to urban United States. And the transportation is more convenience. In the period of 1881-91, the immigration from other country is so high which is about 903 thousands, but the emigration is also high which is about 1,108 thousands. Therefore, the net immigration is negative. In the period of 1890- 1900, the Canadian- born live in the U.S. is about 1.6% that is the higher. However, the net immigration is positive since the wheat boom in 1900s. Because of attracting of net return of the new element, many immigrate was induced to Canada.

There is a relative between population changes and the economic growth. Although the immigrants deplete the employment opportunity to the native- born Canadian, it brings tangible savings to Canada. They push the labor market opportunity at Canada. The immigration can be examined of the production, consumption and economy-of-scale effects. First of all, the immigrants can satisfy the shortages in the labor market. Although the demand of the agriculture is declined, but other sector such as manufacturing is increased in need of labor. The expansion of the industries leads to create new job opportunity. Besides, the immigrants would invest their capital to the industries, it also provides some new job opportunity. Then, the immigrants may also have different expenditure patterns to the native-born Canadian. The greater demand of goods and service is also stimulate the growth of manufacturing. Immigration is also an important condition for viewing the population change. It can be indicate that the social and economic changes, then it can improve our living style and conditions. And it can also influence the growth potential of the country. From the Census 1971, it shows that about 2/3 of the labor force came from the net immigration. They are the one of the factors of the economic growth.

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