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The causality between economic growth and immigration in EU/EFTA member states

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  • Manuel González Gómez
  • Mª Soledad Otero Giráldez

Abstract

The EU/EFTA Member States attract yearly a large population of immigrants. Economists, demographers, historians and sociologists generally agree that the need to fill labor market gaps and the income differences between host and sending countries explain migration into industrialized nations. They also recognize that demographic changes that occur through immigration have important economic effects. However, regarding the existence of economic repercussions of migration, there is no conclusive evidence on the relationship between economic growth and immigration. To this end, the Granger Long-run causality based on the Error Correction Model (ECM) and Johansen cointegration technique and Granger Causality Test were applied to Eurostat database for EU/EFTA nations.

Suggested Citation

  • Manuel González Gómez & Mª Soledad Otero Giráldez, 2017. "The causality between economic growth and immigration in EU/EFTA member states," Working Papers 1701, Universidade de Vigo, Departamento de Economía Aplicada.
    • Handle: RePEc:vig:wpaper:1701
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    References listed on IDEAS

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    More about this item

    Keywords

    Cointegration; foreign population; economic growth; Granger causality test;
    All these keywords.

    JEL classification:

    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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