Immigration, unemployment and GDP in the host country: Bootstrap panel Granger causality analysis on OECD countries

This paper examines the causality relationship between immigration, unemployment and economic growth of the host country. We employ the panel Granger causality testing approach of K´onya (2006) that is based on SUR systems and Wald tests with country specific bootstrap critical values. This approach...

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Bibliographic Details
Main Authors: Boubtane, Ekrame, Coulibaly, Dramane, Rault, Christophe
Other Authors: EconomiX (EconomiX), Université Paris Nanterre (UPN)-Centre National de la Recherche Scientifique (CNRS)
Format: Report
Language:English
Published: HAL CCSD 2013
Subjects:
Immigration
growth
unemployment
causality
[SHS.ECO]Humanities and Social Sciences/Economics and Finance
Norway
Iceland
Online Access:https://hal.science/hal-04141203
https://hal.science/hal-04141203/document
https://hal.science/hal-04141203/file/WP_EcoX_2013-14.pdf
Description
Summary:This paper examines the causality relationship between immigration, unemployment and economic growth of the host country. We employ the panel Granger causality testing approach of K´onya (2006) that is based on SUR systems and Wald tests with country specific bootstrap critical values. This approach allows to test for Granger causality on each individual panel member separately by taking into account the contemporaneous correlation across countries. Using annual data over the 1980-2005 period for 22 OECD countries, we find that, only in Portugal, unemployment negatively causes immigration, while in any country, immigration does not cause unemployment. On the other hand, our results show that, in four countries (France, Iceland, Norway and the United Kingdom), growth positively causesimmigration, whereas in any country, immigration does not cause growth.

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