The paper , as a new contribution, aims to explore the impacts of bi-demographic structure on the current account and growth. By using a SVAR modeling, we track the dynamic impacts between the underlying variablesof the Saudi economy . New insights have been developed to study the interrelations between population growth, current account and economic growth inside the neoclassical theory of population . The long-run net impact on economic growth of the bi-population growth is negative , due to the typically lower skill sets of the immigrant labor population . Besides, the negative long-run contribution of immigrant workers to the current account growth largely exceeds that of contributions from the native population, because of the increasing levels of remittance outflows from the country . We find that a positive shock in immigration leads to a negative impact on native active age ratio. Thus, the immigrants appear to be more substitutes than complements for native workers.
The paper aims to explore the impacts of bi-demographic structure on the current account and growth. Using a SVAR modeling, we track the dynamic impacts between these underlying variables . New insights have been developed about the dynamic interrelation between population growth, current account and economic growth . The long-run net impact on economic growth of the domestic working population growth and demand labor for emigrants is positive , due to the predominant contribution of skilled emigrant workers . Besides, the positive long-run contribution of emigrant workers to the current account growth largely compensates the negative contribution from the native population, because of the predominance of skilled compared to unskilled workforce . We find that a positive shock in demand labor for emigrant workers leads to an increasing effect on native active age ratio. Thus, the emigrants appear to be more complements than substitutes for native workers.
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, as a new contribution,
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By using
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the underlying variablesof the Saudi economy
these underlying variables
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to study the interrelations
about the dynamic interrelation
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inside the neoclassical theory of population
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bi-population growth is negative
domestic working population growth and demand labor for emigrants is positive
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typically lower skill sets of the immigrant labor population
predominant contribution of skilled emigrant workers
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negative
positive
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immigrant
emigrant
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exceeds that of contributions
compensates the negative contribution
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increasing levels of remittance outflows from the country
predominance of skilled compared to unskilled workforce
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immigration leads to a negative impact
demand labor for emigrant workers leads to an increasing effect
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immigrants
emigrants
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substitutes than complements
complements than substitutes