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Immigration, Unemployment and Growth: Empirical Evidence from Greece

  • Chletsos, Michael
  • Roupakias, Stelios

Abstract: This paper applies cointegration analysis and Granger non-causality tests in order to identify the direction of causality between migration in Greece and two macroeconomic variables: GDP and unemployment. We use annual data for the 1980-2011 period. The data are drawn from the International Migration Statistics (OECD) and the International Monetary Fund Database (IMF). Our results provide empirical evidence that the growth rates of GDP and unemployment cause migration in Granger’s sense. On the contrary, evidence of reverse causality is not established.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 39861.

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Date of creation: 05 Jun 2012
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Handle: RePEc:pra:mprapa:39861
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  11. Morley, Bruce, 2006. "Causality between economic growth and immigration: An ARDL bounds testing approach," Economics Letters, Elsevier, vol. 90(1), pages 72-76, January.
  12. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
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  14. Gaston, Noel & Nelson, Douglas, 2000. "Immigration and Labour-Market Outcomes in the United States: A Political-Economy Puzzle," Oxford Review of Economic Policy, Oxford University Press, vol. 16(3), pages 104-14, Autumn.
  15. Johansen, Soren, 1988. "Statistical analysis of cointegration vectors," Journal of Economic Dynamics and Control, Elsevier, vol. 12(2-3), pages 231-254.
  16. Boubtane, Ekrame & Coulibaly, Dramane & Rault, Christophe, 2011. "Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries," IZA Discussion Papers 5853, Institute for the Study of Labor (IZA).
  17. Granger, C. W. J., 1988. "Some recent development in a concept of causality," Journal of Econometrics, Elsevier, vol. 39(1-2), pages 199-211.
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  23. Gregory, A.W. & Hansen, B.E., 1992. "Residual-Based Tests for Cointegration in Models with Regime Shifts," RCER Working Papers 335, University of Rochester - Center for Economic Research (RCER).
  24. Dolado, Juan J & Goria, Alessandra & Ichino, Andrea, 1994. "Immigration, Human Capital and Growth in the Host Country: Evidence from Pooled Country Data," Journal of Population Economics, Springer, vol. 7(2), pages 193-215.
  25. Konya, Laszlo, 2006. "Exports and growth: Granger causality analysis on OECD countries with a panel data approach," Economic Modelling, Elsevier, vol. 23(6), pages 978-992, December.
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  28. Liesbet Okkerse, 2008. "How To Measure Labour Market Effects Of Immigration: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 22(1), pages 1-30, 02.
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