Does inmigration have an impact on economic development and unemployment?. Empirical evidence from Finland(1981-2001)

This study aims at investigating the nature of the causal relationship between immigration and two macroeconomic indicators, GDP per capita and unemployment using Granger causality tests based on Finnish data during the period between 1981-2001. Results indicate that the null hypotheses of immigration does not granger cause GDP per capita is rejected in 2-year lag, at the 5% level. Results show no evidence of reverse causality. On the other hand, the null hypotheses of immigration does not granger cause unemployment is rejected in 2-year lag at the 5% level. Again, results show no evidence of reverse causation.