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The Impact Of Immigrants On The UK Economy

Mihaela Simionescu

Knowledge Horizons - Economics, 2017, vol. 9, issue 2, 31-46

Abstract: Starting from the recent debates on Brexit, the main aim of this paper is to evaluate the impact of immigrants on the UK economy. In this context, we made a comparison between EU and non-EU immigrants in the period 1991-2015. According to estimations based on vector error correction models, there is not a long-run relationship between number of EU immigrants and employment rate, respectively real economic growth in the UK in the period 1991-2015. On the other hand, the number of non-EU employees is higher and they had a significant impact on the UK labour market. A significant causal relationship from employment rate to number of non-EU immigrants was identified in the period 1991-2015. The Brexit’s argument related to the negative impact of EU immigrants on the UK economy is not supported by the empirical findings.

Keywords: Immigrants; Vector Error Correction Model; Brexit; GDP; Employment (search for similar items in EconPapers)
JEL-codes: C51 C53 J61 (search for similar items in EconPapers)
Date: 2017
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