The Impact of Immigration and Cultural Diversity on Innovation and Economic Growth

Running head: ECONOMICS
Economics
Name of the student
Name of the university
Author note

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Table of Contents
Title............................................................................................................................................3
Research questions.....................................................................................................................3
Literature review........................................................................................................................3
Introduction................................................................................................................................3
Immigration boosted the performance of international trade.....................................................4
Migration help to increase the domestic savings.......................................................................4
Links between the presence of foreigners and innovation.........................................................5
Cultural diversity........................................................................................................................6
Cultural diversity and economic growth....................................................................................6
Past exposure to migrants known to determine he earnings growth..........................................7
Benefits of immigration.............................................................................................................8
Reference list............................................................................................................................10

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Title
The impact of immigration and cultural diversity on innovation and economic growth.
Research questions
 Are the regions with large number of immigrants in the population more innovative in
nature?
 Does immigration help in innovation and economic growth of a country?
 Does immigration affects the international trade?
Literature review
In the paper “Impact of migration on economic and social development”, it states
about the impact of migration on the economic and social development. It have been found
out that migration can lead to increase in income and reduction of poverty. It also improves
health, development of the growth of economy and also lead to improved educational
outcome.
Introduction
Immigration is very important for boosting economic growth. They also have a
positive effect on the productivity as well as on the economic growth. The highly educated
immigrants will be contributing positively on the economic growth. Immigrants have also
known to boost the performance of the international trade which helps in innovation. They
help in expanding the economy by paying taxes and also funds government actions by
building roads, modernizing water systems. Increase in number of immigrants also leads to
increase in investments as they are known to expand the productivity capacity by building
more establishments (Bosetti, Cattaneo, & Verdolini, 2015). The openness of America to

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immigration have enriched its culture and have expanded the economic opportunity and also
enhanced its influence in the world. The number of working population can also be increased
by increasing immigration. Some of the studies have also suggested that immigration not only
boost economic growth but also leads to a positive impact on the wages of the native born
workers
Immigration boosted the performance of international trade
The paper “the effects of immigration in economic growth” analyses the impact of
immigrants, as workers have showed that the firms have started to trade with the countries of
their origin. The Swedish data have showed that the skilled immigrant employees are very
effective as they are known to boost the export performance of the country. The effect of
immigrants on exports is usually only found to affect the exports of their countries of origin.
The recent studies have also showed that by boosting the firm’s productivity, the skilled
immigrants can also increase their productivity (Kerr & Turner, 2015). The skilled
immigrants can also affect trade by allowing more global mind set among its workforce due
to ethnic diversity. Therefore, the skilled immigration will affect the performance of the firm
not only through the cost channel.
Migration help to increase the domestic savings
Immigrants are known to increase the domestic savings and also improve financial
intermediation. The research from Mexico as well as Philippines suggests that the
remittances have increased the accumulation of assets in the farm equipment. Immigration is
also known to promote self-employment and increases investment in small business in the
migrant sending area. The future flow of the remittances can be used as collateral by the
government. Migration is known to affect the welfare of the household along with the home
community. Skilled immigration is also known to increase the number of research workers.