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

Author

Listed:
  • Ekrame BOUBTANE

    (Centre d'Etudes et de Recherches sur le Développement International(CERDI))

  • C. RAULT
  • Dramane COULIBALY
Abstract
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 Konya (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 causes immigration, whereas in any country, immigration does not cause growth.

Suggested Citation

  • Ekrame BOUBTANE & C. RAULT & Dramane COULIBALY, 2013. "Immigration, unemployment and GDP in the host country: Bootstrap panel Granger causality analysis on OECD countries," Working Papers 201303, CERDI.
    • Handle: RePEc:cdi:wpaper:1426
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Immigration; Growth; Unemployment; Granger causality;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)

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