Economic Repercussions of Opening the Border to Labour Movements between North and South Cyprus

Nuru Giritli (), Glenn Jenkins () and Sevin Ugural ()
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Nuru Giritli: Department of Economics, Eastern Mediterranean University, Mersin 10, Turkey
Sevin Ugural: Department of Economics, Eastern Mediterranean University, Mersin 10, Turkey

No 2014-01, Development Discussion Papers from JDI Executive Programs

Abstract: Policy changes in North Cyprus represent the first phase of integration of the labour markets of North and South Cyprus. Employment of construction workers from the North by South Cyprus has reduced the supply of workers in North Cyprus, while increasing individual incomes. To study the effects on economic well-being and wealth allocation in North Cyprus, a computable general equilibrium (CGE) model of the economy is employed. Moves to maintain labour market stability by issuing additional permits to workers entering North Cyprus from Turkey are also studied. This policy has significantly benefited all stakeholders in North Cyprus.

Keywords: Cyprus; Labour Market Integration; General Equilibrium Analysis; Commuter Workers (search for similar items in EconPapers)
JEL-codes: C68 D57 J08 J61 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2014-01
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Journal Article: Economic repercussions of opening the border to labour movements between North and South Cyprus (2014)
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