DO BORDERS MATTER? A MODEL OF INTERREGIONAL MIGRATION IN AUSTRALASIA

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DO BORDERS MATTER? A MODEL OF INTERREGIONAL MIGRATION IN AUSTRALASIA

This paper builds on extensive recent research on trans-Tasman migration, which is embedded in a matrix of gross interregional migration in Australasia. It is found that, in a descriptive sense, the largely free trans-Tasman movement fits in well in the patterns of interregional migration. There is a common Jabour market in that both trans-Tasman and intra-Australian migration flows respond to interregional differences in income and employment opportunities. There are, however, statistically significant differences in coefficients of migration determinants between intra-Australian flows and trans-Tasman flows. Hence, borders do matter and trans-Tasman migration is not internal migration in an econometric sense. It is argued that these border effects are related, among other factors, to differences in tax and public expenditure policies between the two countries.