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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, Prague University of Economics and Business, vol. 2005(4), pages 350-362.
    • Handle: RePEc:prg:jnlpep:v:2005:y:2005:i:4:id:270:p:350-362
    DOI: 10.18267/j.pep.270
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    1. Rachel M. Friedberg, 2001. "The Impact of Mass Migration on the Israeli Labor Market," The Quarterly Journal of Economics, President and Fellows of Harvard College, 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. Feridun, M., 2004. "Does inmigration have an impact on economic development and unemployment?. Empirical evidence from Finland(1981-2001)," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 1(3), pages 39-60.
    5. 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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    Cited by:

    1. Alexandra M. Espinosa & Ignacio Díaz-Emparanza, 2023. "Assessing the Spanish immigration policy with frequency-wise causality in Hosoya’s sense," Empirical Economics, Springer, vol. 65(1), pages 111-147, July.
    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. Alkhateeb, Tarek Tawfik Yousef & Alkahtani, Nasser Saad & Mahmood, Haider, 2017. "Assessing the Role of Foreign Labour on Saudi Labour Unemployment in Saudi Arabia," MPRA Paper 109449, University Library of Munich, Germany.
    4. Swapnanil SENGUPTA & Rareș Petru MIHALACHE, 2021. "How do immigration impact unemployment and economic prosperity? An extensive investigation from the OECD nations," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(1(626), S), pages 5-22, Spring.
    5. Imran SARIHASAN, 2016. "Immigration Growth Tendencies In Oecd Countries," SEA - Practical Application of Science, Romanian Foundation for Business Intelligence, Editorial Department, issue 12, pages 547-553, December.
    6. Alexandra M. Espinosa & Ignacio Díaz-Emparanza, 2021. "The Long-term Relationship Between International Labour Migration and Unemployment in Spain," Journal of International Migration and Integration, Springer, vol. 22(1), pages 145-166, March.
    7. Nyagweta, David Tinashe, 2020. "Labour immigration, per capita income growth, and unemployment in post-apartheid South Africa," MPRA Paper 105421, University Library of Munich, Germany.
    8. Gancho Ganchev & Mariya Paskaleva, 2019. "The Relationship between Workforce Migration and the Basic Macroeconomic Variables of the Countries from Central Eastern Europe with a Focus on Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 45-69.
    9. Latif, Ehsan, 2015. "The relationship between immigration and unemployment: Panel data evidence from Canada," Economic Modelling, Elsevier, vol. 50(C), pages 162-167.
    10. Herrera Gómez, Marcos, 2010. "Causalidad Espacial. Enfoque No Paramétrico [Spatial Causality. Non-Parametric Approach]," MPRA Paper 61326, University Library of Munich, Germany.

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    More about this item

    Keywords

    unemployment; cointegration; economic development; immigration;
    All these keywords.

    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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