Sample Business Studies Essay Paper on Economic Factors Influencing the Development of Immigration Policies

Economic Factors Influencing the Development of Immigration Policies

The 21st Century is experiencing a wave of globalization symbolized by increased movement of people and capital flows. Today, more than 2 million people of the world’s population reside in a foreign country (Milner & Tingley, n.d.). United States, Australia, and Canada are the major countries experiencing a resurgence of immigration due to their stable economies. Governments pass immigration policies that favor their country economically. Consequently, the subject of immigration policy has been at the center of political debates. For instance, President Trump’s immigration policies have been hotly debated. These include the travel ban, elimination of DACA, and refugee ban. What would have motivated Trump to implement such policies? This article explores the economic factors influencing the development of immigration policies.

Labor Markets

The integration of immigrants in host countries is determined by their economic contributions to the labor market. According to the study conducted by OECD (2014), migrants accounted for a 47% and 70% increase in workforce in the United States and Europe in the past decade. OECD (2014) further established that migrants occupy important niches in both developed and developing economies while young migrants are better educated compared to younger ones. Immigrants have a significant impact on the labor market of the host country. While developing immigrant policies, I would consider the needs of the nation’s labor markets, as well as facilitate entry and offer more legal pathways to migrants with formal employment and legal status. This, as supported by Pezzini & Tomei (2018), can be complemented by keenly monitoring labor markets through consultation from the private sector to ensure efficient migration management systems.

Economic Growth

Various research methodologies have been incorporated in the study of the immigrants’ contributions to the host country’s productivity. These include the OECD (2014) research that determined that immigrants increase the working-age population since they arrive with skills that promote a country’s human capital development. The study also established the significant contribution of immigrants to the country’s technological progress. Consequently, the immigration policy will feature channels of public employment services to foster the employability of immigrants. Since the immigrants’ productivity largely depends on their living and working conditions, immigration policies will oversee the prioritization of the immigrants’ rights protection by public authorities and other stakeholders. This will aid in the prevention of all forms of discrimination and racism towards immigrants in their host countries (Pezzini & Tomei, 2018).

Public Finance

It is important to analyze the immigrant contribution to the country’s fiscal balance and public services when developing immigration policies. Immigration’s fiscal value is determined by deducting the cost of providing immigrants with public services from the taxes paid by immigrants (Milner & Tingler, n.d.).  Pezzini and Tomei (2018) contend that immigrants attribute to an upward trend of the overall public revenues. They, however, assert that the increase may not often be adequate enough to offset the expenditure of public services. According to the findings by OECD (2014), host countries receive more from immigrants in taxes and social contributions compared to what they offer them (immigrants). The study further established that employment is the major determinant of the net fiscal contribution of the immigrants where labor immigrants have the most positive impact. To benefit from this data, I will ensure the policy promotes foreign investments by eliminating barriers and expanding the tax base of the informal sector to promote the formal sector. Lastly, I will set policy measures to ensure a seamless integration of immigrants. According to Pezzini and Tomei (2018), the lack of comprehensive integration policies can lead to severe problems of social cohesion, which, in turn, will reduce the immigrant’s ability to boost the country’s development. In order to maximize the benefits presented by immigrants, it is important to understand their impact on the economy. To efficiently monitor the economic impact of immigration, a country needs to invest in improved migration-data collection. This will help governments in implementing adequate public policies (Pezzini &Tomei, 2018).


Globalization has led to increased movement of people and cash flow. Migration rates have increased exponentially, especially in countries that have stable economies like the United States and Canada. This has highlighted the importance of immigration policies, and consequently, most countries are setting up policies that favor their economic status. Migration can improve the market labor, economic growth, and fiscal balance of the host countries. When developing immigration policies, these factors are closely analyzed to ensure the host country benefits from the influx of people. For instance, immigration policies can facilitate the entry programs and eliminate barriers surrounding employment issues. Policy measures can be put in place to encourage investment from immigrants, as well as promote immigration integration by protecting the migrants’ rights. Lastly, it is important to closely monitor the impact of immigrants to understand how a country can benefit through policies. It is, therefore, essential to invest in the improvement of data collection.


Milner, H. V., & Tingley, D. (n.d.) The Economic and Political Influences on Different Dimensions of United States Immigration Policy. Retrieved from

Pezzini, M., & Tomei, M. (2018). How Immigrants Contribute to Developing Countries’ Economies. OECD. Retrieved from

OECD. (2014). Is Migration Good for the Economy? Migration Policy Debates. OECD. Retrieved from