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

  • Feridun, M.
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    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.

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    File URL: http://www.usc.es/economet/reviews/ijaeqs132.pdf
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    Article provided by Euro-American Association of Economic Development in its journal International Journal of Applied Econometrics and Quantitative Studies .

    Volume (Year): 1 (2004)
    Issue (Month): 3 ()
    Pages: 39-60

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    Handle: RePEc:eaa:ijaeqs:v:1:y2004:i:1_14
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    1. Rachel M. Friedberg & J. Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Working Papers 95-5, Brown University, Department of Economics.
    2. Withers, Glenn & Pope, David, 1985. "Immigration and Unemployment," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 554-63, June.
    3. Granger, C W J, 1969. "Investigating Causal Relations by Econometric Models and Cross-Spectral Methods," Econometrica, Econometric Society, vol. 37(3), pages 424-38, July.
    4. Borjas, George J & Freeman, Richard B & Katz, Lawrence, 1996. "Searching for the Effect of Immigration on the Labor Market," American Economic Review, American Economic Association, vol. 86(2), pages 246-51, May.
    5. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    6. Jolley, A N E, 1971. "Immigration and Australia's Post-war Economic Growth," The Economic Record, The Economic Society of Australia, vol. 47(117), pages 47-59, March.
    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 180-93, June.
    8. Jörn-Steffen Pischke & Johannes Velling, 1997. "Employment Effects Of Immigration To Germany: An Analysis Based On Local Labor Markets," The Review of Economics and Statistics, MIT Press, vol. 79(4), pages 594-604, November.
    9. Rachel M. Friedberg, 2001. "The Impact Of Mass Migration On The Israeli Labor Market," The Quarterly Journal of Economics, MIT Press, vol. 116(4), pages 1373-1408, November.
    10. 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.
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