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Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries

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  • Ekrame Boubtane
  • Dramane Coulibaly
  • Christophe Rault

Abstract

This paper examines empirically the interaction between immigration and host country economic conditions. We employ 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, nativeand 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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Suggested Citation

  • Ekrame Boubtane & Dramane Coulibaly & Christophe Rault, 2013. "Immigration, Growth, and Unemployment: Panel VAR Evidence from OECD Countries," LABOUR, CEIS, vol. 27(4), pages 399-420, December.
  • Handle: RePEc:bla:labour:v:27:y:2013:i:4:p:399-420
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    Cited by:

    1. Hippolyte d'Albis & Ekrame Boubtane & Dramane Coulibaly, 2016. "Immigration Policy and Macroeconomic Performance in France," Annals of Economics and Statistics, GENES, issue 121-122, pages 279-308.
    2. Kamrul Hassan & Ariful Hoque & Ananth Rao, 2015. "Revisiting the Link Between Stock Prices and Goods Prices in OECD Countries," Australian Economic Papers, Wiley Blackwell, vol. 54(3), pages 135-150, September.
    3. D'Albis, Hippolyte & Boubtane, Ekrame & Coulibaly, Dramane, 2017. "International Migration and Regional Housing Markets: Evidence from France," IZA Discussion Papers 10516, Institute for the Study of Labor (IZA).
    4. Blaise Gnimassoun & C. John Anyanwu, 2018. "The Diaspora And Economic Development In Africa," EconomiX Working Papers 2018-16, University of Paris Nanterre, EconomiX.
    5. Amelia Aburn & Dennis Wesselbaum, 2017. "Gone with the Wind: International Migration," Working Papers 1708, University of Otago, Department of Economics, revised Apr 2017.
    6. Ekrame Boubtane & Jean-Christophe Dumont & Christophe Rault, 2016. "Document de Recherche du Laboratoire d'Économie d'Orléans "Immigration and economic growth in the OECD countries 1986- 2006"
      [Document de Recherche du Laboratoire d'Economie d'Orléans &qu
      ," Working Papers halshs-01252165, HAL.
    7. repec:leo:wpaper:2235 is not listed on IDEAS
    8. Klara Halova & Roman Horvath, 2015. "International Spillovers of ECB’s Unconventional Monetary Policy: The Effect on Central and Eastern Europe," Working Papers 351, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    9. Ali Fakih & May Ibrahim, 2016. "The impact of Syrian refugees on the labor market in neighboring countries: empirical evidence from Jordan," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(1), pages 64-86, February.
    10. Ekrame Boubtane & Jean-Christophe Dumont & Christophe Rault, 2016. "Immigration and economic growth in the OECD countries 1986–2006," Oxford Economic Papers, Oxford University Press, vol. 68(2), pages 340-360.
    11. repec:iez:survey:ces-v19_1-2017_palic-posedelsimovic-vizek is not listed on IDEAS
    12. Canova, Fabio & Ciccarelli, Matteo, 2013. "Panel vector autoregressive models: a survey," Working Paper Series 1507, European Central Bank.
    13. Weber, Enzo & Weigand, Roland, 2016. "Identifying macroeconomic effects of refugee migration to Germany," IAB Discussion Paper 201620, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    14. Stacie Beck & Soodong Park, 2014. "How Fiscal Policies Reduce Labor Force Participation In Open Economies: Evidence On Tax Competition And Compensation Hypotheses," Working Papers 14-16, University of Delaware, Department of Economics.
    15. Erygit Pinar & Cura Serkan & Zungun Deniz & Ortanca Murat, 2014. "Econometric Evaluation Of The Relationship Economic Growth And Unemployment In Eu & Turkey," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 452-462, July.
    16. Aurore Gary & Audrey-Rose Menard, 2015. "Aid, Trade and Migration : How are OECD countries policies connected in times of crisis?," Working Papers of BETA 2015-11, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    17. Giang Ho & Kazuko Shirono, 2015. "The Nordic Labor Market and Migration," IMF Working Papers 15/254, International Monetary Fund.
    18. Hassan B. Ghassan & Hassan R. Al-Hajhoj & Faruk Balli, 2018. "Bi-Demographic Changes and Current Account using SVAR Modeling: Evidence from Saudi Economy," Papers 1803.11161, arXiv.org, revised Apr 2018.
    19. Mehdi Ben Slimane & Marilyne Huchet-Bourdon & Habib Zitouna, 2016. "Do FDI inflows and energy price affect the food import dependency in developing countries? Evidence from panel VAR Models," Working Papers SMART - LERECO 16-04, INRA UMR SMART-LERECO.
    20. repec:ebl:ecbull:eb-18-00126 is not listed on IDEAS
    21. Marianna Oliskevych, 2015. "Dynamic Analysis and Modeling of the Labor Market Development in Ukraine," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 5(2), pages 127-135, April.
    22. repec:spd:journl:v:67:y:2017:i:3:p:49-78 is not listed on IDEAS
    23. repec:exl:25engi:v:27:y:2016:i:2:p:124-133 is not listed on IDEAS
    24. Ekrame Boubtane & Jean-Christophe Dumont & Christophe Rault, 2016. "Document de Recherche du Laboratoire d'Économie d'Orléans "Immigration and economic growth in the OECD countries 1986- 2006"
      [Document de Recherche du Laboratoire d'Economie d'Orléans &qu
      ," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01252165, HAL.
    25. repec:taf:applec:v:49:y:2017:i:24:p:2352-2364 is not listed on IDEAS

    More about this item

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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