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Immigration, income and unemployment: an application of the bounds testing approach to cointegration

Immigration, income and unemployment: an application of the bounds testing approach to cointegration

Feridun, Mete (2007) Immigration, income and unemployment: an application of the bounds testing approach to cointegration. The Journal of Developing Areas, 41 (1). pp. 37-49. ISSN 1548-2278 (doi:10.1353/jda.2008.0014)

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Abstract

This study aims at investigating the nature of the causal relationship between immigration and two macroeconomic indicators, GDP per capita and unemployment, in Sweden using autoregressive distributed lag (ARDL) bounds testing procedure and Granger-causality within vector error correction model (VECM) based on annual data spanning the period between 1980 and 2004. Results of the ARDL bounds test are supportive of the theory that the variables are in a long-run equilibrium level relationship. On the other hand, results of the Granger-causality tests support the existence of a long-run, bidirectional causality between immigration and GDP per capita. However, results do not support the hypothesis that immigration causes unemployment. On the contrary, evidence suggests that unemployment causes immigration.

Item Type: Article
Uncontrolled Keywords: economics
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HC Economic History and Conditions
Faculty / Department / Research Group: Faculty of Business > Department of International Business & Economics
Faculty of Business > Greenwich Political Economy Research Centre (GPERC)
Related URLs:
Last Modified: 02 Nov 2016 13:52
URI: http://gala.gre.ac.uk/id/eprint/7928

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