Prague Economic Papers 2005, 14(4):350-362 | DOI: 10.18267/j.pep.270

Investigating the Economic Impact of Immigration on the Host Country: The Case of Norway

Mete Feridun
Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, Turkey (e-mail: mete.feridun@lycos.com).

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.

Keywords: unemployment, cointegration, economic development, immigration
JEL classification: F41, J6, O11, O14, O24

Published: January 1, 2005  Show citation

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Feridun, M. (2005). Investigating the Economic Impact of Immigration on the Host Country: The Case of Norway. Prague Economic Papers, 14(4), 350-362. doi: 10.18267/j.pep.270
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