The causality between economic growth and immigration in EU/EFTA member states

Zusammenfassung

The EU/EFTA Member States attract yearly a large population of immigrants. Economists, demographers, historians and sociologists generally agree that the need to fill labor market gaps and the income differences between host and sending countries explain migration into industrialized nations. They also recognize that demographic changes that occur through immigration have important economic effects. However, regarding the existence of economic repercussions of migration, there is no conclusive evidence on the relationship between economic growth and immigration. To this end, the Granger Long-run causality based on the Error Correction Model (ECM) and Johansen cointegration technique and Granger Causality Test were applied to Eurostat database for EU/EFTA nations