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The Impact Of Immigrants On The UK Economy

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  • Mihaela Simionescu

Abstract

Starting from the recent debates on Brexit, the main aim of this paper is to evaluate the impact of immigrants on the UK economy. In this context, we made a comparison between EU and non-EU immigrants in the period 1991-2015. According to estimations based on vector error correction models, there is not a long-run relationship between number of EU immigrants and employment rate, respectively real economic growth in the UK in the period 1991-2015. On the other hand, the number of non-EU employees is higher and they had a significant impact on the UK labour market. A significant causal relationship from employment rate to number of non-EU immigrants was identified in the period 1991-2015. The Brexit’s argument related to the negative impact of EU immigrants on the UK economy is not supported by the empirical findings.

Suggested Citation

  • Mihaela Simionescu, 2017. "The Impact Of Immigrants On The UK Economy," Knowledge Horizons - Economics, Faculty of Finance, Banking and Accountancy Bucharest,"Dimitrie Cantemir" Christian University Bucharest, vol. 9(2), pages 31-46, June.
  • Handle: RePEc:khe:journl:v:9:y:2017:i:2:p:31-46
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    References listed on IDEAS

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    1. 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.
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    3. Petr Duczynski, 2000. "Capital Mobility in NeoClassical Models of Growth: Comment," American Economic Review, American Economic Association, vol. 90(3), pages 687-694, June.
    4. Jonathan Wadsworth, 2015. "Immigration and the UK Labour Market," CEP Election Analysis Papers 019, Centre for Economic Performance, LSE.
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    More about this item

    Keywords

    Immigrants; Vector Error Correction Model; Brexit; GDP; Employment;
    All these keywords.

    JEL classification:

    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation
    • C53 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Forecasting and Prediction Models; Simulation Methods
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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