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Title
Responses to Labour Constraint on the Singapore Economy: A CGE Modelling Approach
Fields of Research (FoR) 2008:
Author(s)
Publication Date
2011
Socio-Economic Objective (SEO) 2008
Abstract
As a city state and an export-oriented economy, Singapore constantly experiences labour shortages. Although Singapore government tackles this problem by an encouraging migrant worker policy, labour constraint imposes a serious threat to the sustainable growth of the Singapore economy. This study employs the updated Singaporean input-output tables and a Computable General Equilibrium (CGE) model to gauge the long-run effects of a negative shock in labour supply as well as selected three policy responses. The simulation results suggest the effectiveness of all proposed reactions: while an increase in capital and a change in economic structure largely offset the negative effect of labour supply shock, an increase in technological efficiency induces sizeable economic growth.
Publication Type
Journal Article
Source of Publication
The International Journal of Environmental, Cultural, Economic and Social Sustainability, 7(5), p. 1-16
Publisher
Common Ground Research Networks
Place of Publication
United States of America
ISSN
1832-2077
Peer Reviewed
Yes
HERDC Category Description
Peer Reviewed
Yes
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