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Immigration, growth and unemployment: Panel VAR evidence from OECD countries

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  • Ekrame BOUBTANE

    (CERDI - Centre d'études et de recherches sur le developpement international - CNRS : UMR6587 - Université d'Auvergne - Clermont-Ferrand I)

  • Dramane COULIBALY

    (Economix CNRS - Université Paris Ouest)

  • C. Rault

    (LEO - Laboratoire d'économie d'Orleans - CNRS : UMR7322 - Université d'Orléans)

Abstract

This paper examines empirically the interaction between immigration and host country economic conditions. We employ a panel VAR techniques to use a large annual dataset on 22 OECD countries over the period 1987-2009. The VAR approach allows to addresses the endogeneity problem by allowing the endogenous interaction between the variables in the system. Our results provide evidence of migration contribution to host economic prosperity (positive impact on GDP per capita and negative impact on aggregate unemployment, native- and foreign-born unemployment rates). We also find that migration is influenced by host economic conditions (migration responds positively to host GDP per capita and negatively to host total unemployment rate).

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Paper provided by HAL in its series Working Papers with number halshs-00827002.

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Date of creation: 28 May 2013
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Handle: RePEc:hal:wpaper:halshs-00827002

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Keywords: immigration; growth; Unemployment; panel VAR;

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