Immigration and growth of GDP in the United States of America
This paper estimates the effect of immigration on real GDP in the United States of America using annual time series data from 1950 to 2013. For the estimation and analysis an aggregate production function model is developed in which total capital, labor, and immigration are variables to explain real GDP. Before estimating the model the time series properties of the data are diagnosed and an error correction model is developed and estimated. The estimated results suggest that labor and capital have a significant effect on output growth. Immigration, however, has neither positive nor negative statistical effect on real GDP.