Immigration, unemployment and growth 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 bootstrap panel Granger causality testing approach of Kónya (2006) that allows to test for causality on each individual country separably by accounting for dependen...

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Bibliographic Details
Main Authors: Boubtane, Ekrame, Coulibaly, Dramane, Rault, Christophe
Format: Report
Language:English
Published: Bonn: Institute for the Study of Labor (IZA) 2011
Subjects:
ddc:330
E20
F22
J61
immigration
growth
unemployment
Granger causality
Iceland
Online Access:http://hdl.handle.net/10419/51823
https://nbn-resolving.org/urn:nbn:de:101:1-201107283796
Description
Summary:This paper examines the causality relationship between immigration, unemployment and economic growth of the host country. We employ the bootstrap panel Granger causality testing approach of Kónya (2006) that allows to test for causality on each individual country separably by accounting for dependence across countries. Using annual data over the period 1980-2005 for 22 OECD countries, we find that, only in Portugal, unemployment negatively causes immigration, while in any country, immigration does not cause unemployment. We also find that, in France, Iceland, Norway and United Kingdom, growth positively causes immigration, while in any country, immigration does not cause growth.

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