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Immigration and Economic Growth: The Case of Greece

In: Economic Growth in the European Union

Author

Listed:
  • Anastasia Blouchoutzi

    (Department of International and European Studies, University of Macedonia)

  • Christos Nikas

    (Department of International and European Studies, University of Macedonia)

Abstract

In the aftermath of the recent economic and migration crisis, Greece was found facing questions such as whether immigration is advantageous for the economy of the country or whether the benefits of immigration outweigh its economic cost. During a recession, immigration usually attracts general attention due to the competition for scarce job vacancies and social provisions. Consequently, countries tend to respond reactively by adopting more restrictive immigration policies. However, the economically rational response to the immigrant inflows is the effective labor market integration, which eventually leads to a successful social inclusion of the immigrants. This chapter focuses on displaying the potential gains of immigration for Greece by presenting the “immigration surplus,” that is the economic benefits due to immigration. A neoclassical growth model is used assuming a competitive, market-clearing framework to measure the impact of immigrants in natives’ earnings from 2001 to 2018. Moreover, the chapter aims at exploring whether there is a long-run relationship between immigration and growth in Greece and estimate it using the dynamic least squares method.

Suggested Citation

  • Anastasia Blouchoutzi & Christos Nikas, 2020. "Immigration and Economic Growth: The Case of Greece," Contributions to Economics, in: Christos Nikas (ed.), Economic Growth in the European Union, pages 177-191, Springer.
    • Handle: RePEc:spr:conchp:978-3-030-48210-7_13
    DOI: 10.1007/978-3-030-48210-7_13
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