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Investigating the Economic Impact of Immigration on the Host Country: The Case of Norway

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  • Mete Feridun

Abstract

This article aims at investigating the nature of the causal relationship between immigration and economic development measured by GDP per capita in Norway using Granger causality test. The results on the unit root test indicate that all the series are non-stationary and are in I(1) process. The Johansen cointegration test reveals that there is no cointegration among the data sets. The Granger causality test shows that when the level of immigration increases, GDP per capita also increases. It has also been found that immigration has no impact on unemployment, and vice versa.

Suggested Citation

  • Mete Feridun, 2005. "Investigating the Economic Impact of Immigration on the Host Country: The Case of Norway," Prague Economic Papers, University of Economics, Prague, vol. 2005(4), pages 350-362.
  • Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:4:id:270:p:350-362
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    References listed on IDEAS

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    1. Rachel M. Friedberg, 2001. "The Impact of Mass Migration on the Israeli Labor Market," The Quarterly Journal of Economics, Oxford University Press, vol. 116(4), pages 1373-1408.
    2. 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 246-251, May.
    3. Withers, Glenn & Pope, David, 1985. "Immigration and Unemployment," The Economic Record, The Economic Society of Australia, vol. 61(173), pages 554-563, June.
    4. 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.
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    Citations

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    Cited by:

    1. Latif, Ehsan, 2015. "The relationship between immigration and unemployment: Panel data evidence from Canada," Economic Modelling, Elsevier, vol. 50(C), pages 162-167.
    2. Driouchi, Ahmed & Harkat, Tahar, 2017. "Granger Causality and the Factors underlying the Role of Younger Generations in Economic, Social and Political Changes in Arab Countries," MPRA Paper 77218, University Library of Munich, Germany.
    3. Herrera Gómez, Marcos, 2010. "Causalidad Espacial. Enfoque No Paramétrico
      [Spatial Causality. Non-Parametric Approach]
      ," MPRA Paper 61326, University Library of Munich, Germany.
    4. repec:exl:25engi:v:27:y:2016:i:4:p:452-461 is not listed on IDEAS
    5. Imran SARIHASAN, 2016. "Immigration Growth Tendencies In Oecd Countries," SEA - Practical Application of Science, Fundația Română pentru Inteligența Afacerii, Editorial Department, issue 12, pages 547-553, December.

    More about this item

    Keywords

    unemployment; cointegration; economic development; immigration;

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy

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