The Nexus of Immigration and Economic Conditions In Australia

Abstract

In this study, we aim to analyze the causal linkages between immigration
and economic conditions - unemployment and per capita income- in Australia over
the period of 1966-2013 by using causality tests developed by Toda and Yamamoto
(1995) and Hacker-Hatemi-J (2006). The results support one-way causal relationships
running from both unemployment and per capita income to immigration. However,
immigrants do not have a significant impact on the economic conditions of Australia.
On the contrary, the high level of income and the low unemployment rate are the
pulling factors of immigrants into Australia. Based on these results, some crucial
policy implications would be suggested.