Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries

28 Pages Posted: 1 May 2013

See all articles by Ekrame Boubtane

Ekrame Boubtane

Paris School of Economics

Dramane Coulibaly

Université Paris X Nanterre; Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

Christophe Rault

University of Orleans; IZA Institute of Labor Economics; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: April 30, 2013

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.

Keywords: immigration, growth, unemployment, Granger causality

JEL Classification: E200, F220, J610

Suggested Citation

Boubtane, Ekrame and Coulibaly, Dramane and Coulibaly, Dramane and Rault, Christophe and Rault, Christophe, Immigration, Unemployment and Growth in the Host Country: Bootstrap Panel Granger Causality Analysis on OECD Countries (April 30, 2013). Available at SSRN: https://ssrn.com/abstract=2258385 or http://dx.doi.org/10.2139/ssrn.2258385

Ekrame Boubtane

Paris School of Economics ( email )

48 boulevard Jourdan
Paris, 75014
France

HOME PAGE: http://https://www.parisschoolofeconomics.eu/fr/boubtane-ekrame-cerdi/

Dramane Coulibaly

Centre d'Etudes Prospectives et d'Info. Internationales (CEPII)

France

Université Paris X Nanterre ( email )

92, av. de la République, Nanterre
Room G301, Building G
Paris, Nanterre Cedex 92001
France

Christophe Rault (Contact Author)

University of Orleans ( email )

Rue de Blois
BP 6739
LEO, Orleans, Orleans cedex 2 45067
France

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

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