The effects of the 2015 migration crisis on Sweden’s economic growth

University essay from Lunds universitet/Nationalekonomiska institutionen

Abstract: The purpose of this essay is to investigate the effects of the 2015 migration crisis on Sweden’s economic growth and GDP per capita levels, along with the general effects of migration on economic growth in Sweden and the world. Further the possible effects of an employment rate of the migrant labor force equal to that of the native labor force is investigated, and the effect this would have on economic growth. This is examined by on one hand quantifying the effects by calculating Sweden’s future economic growth for six different scenarios with a modified version of the Uzawa-Lucas model, and on the other hand by compiling and analyzing previous research on the topic. It is found that Sweden’s anticipated GDP per capita is higher than it would have been without the migration crisis, that a higher employment rate for migrants could increase the GDP per capita further and that migration tends to have a positive effect on economic growth.

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