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Does inmigration have an impact on economic development and unemployment?. Empirical evidence from Finland(1981-2001)

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  • Feridun, M.

Abstract

This study aims at investigating the nature of the causal relationship between immigration and two macroeconomic indicators, GDP per capita and unemployment using Granger causality tests based on Finnish data during the period between 1981-2001. Results indicate that the null hypotheses of immigration does not granger cause GDP per capita is rejected in 2-year lag, at the 5% level. Results show no evidence of reverse causality. On the other hand, the null hypotheses of immigration does not granger cause unemployment is rejected in 2-year lag at the 5% level. Again, results show no evidence of reverse causation.

Suggested Citation

  • Feridun, M., 2004. "Does inmigration have an impact on economic development and unemployment?. Empirical evidence from Finland(1981-2001)," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 1(3), pages 39-60.
  • Handle: RePEc:eaa:ijaeqs:v:1:y2004:i:1_14
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    File URL: http://www.usc.es/economet/reviews/ijaeqs132.pdf
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    References listed on IDEAS

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    5. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
    6. Borjas, George J., 1999. "The economic analysis of immigration," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 28, pages 1697-1760 Elsevier.
    7. Gruen, F H, 1986. "How Bad Is Australia's Economic Performance and Why?," The Economic Record, The Economic Society of Australia, vol. 62(177), pages 180-193, June.
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    More about this item

    Keywords

    Granger causality; economic development; immigration;

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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