This week’s efforts have been concentrated around finding a suitable methodology given data available. Further literature review has been undertaken to grasp a further understanding of the array of effect migration can have on an economy. The remainder of my literature review will revolve around city to rural migration to assist me in the second step of methodology. I am still yet to find solid in-depth literature on city to rural migration within Australia (especially with immigration as a determinant) so studies from other nations may be necessary to gather theories behind the phenomena. Furthermore, I am yet to come across a study which assesses the Harris-Todaro migration decision relative to econometric testing. Further review into city to rural migration will allow me to fill this research gap to the best of my ability, now that a methodology has been established.
At this stage I am reasonably confident that a two-step econometric model will be used, followed by a Harris-Todaro comparison. Firstly, a modified ANOVA regression will allow me to have two response variables (being Sydney wage & labour rates) tested by a single predictor (immigration). These two response variables will then become inputs into a second MANOVA predicting the rural wage & rural labour force impact. I have decided to use a two-step model as it allows the phenomena to be broken up into two clear events; immigration on Sydney, then migration of city dwellers to rural areas.
Overall research progress has been slow, but steady. The important step this week is to finalise my proposal draft through additional literature review. I can then begin to prepare my presentation so that my research & ideas can be well portrayed to my audience.
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