Discussion Papers no. 860

A counterfactual analysis of the Norwegian resource boom 2004-2013

Immigration and the Dutch disease

The EU-enlargement in 2004 increased labour migration and affected the Norwegian labour market in particular. We study how this modified the Dutch disease effects during the resource boom 2004- 2013.

In the Norwegian case the resource movement effect of the petroleum industry has historically dominated the spending effect. One reason is the introduction of the fiscal policy rule in 2001 that limited spending. We find that economic growth in Norway was roughly doubled during this period due to the resource boom while total population increased by 2 per cent. We find that both the resource movement and spending effects on Mainland GDP have been reduced by roughly 2 percentage points due to immigration while the unemployment rate was not much affected.

About the publication

Title

Immigration and the Dutch disease. A counterfactual analysis of the Norwegian resource boom 2004-2013

Author

Ådne Cappelen and Torbjørn Eika

Series and number

Discussion Papers no. 860

Publisher

Statistisk sentralbyrå

Topic

Discussion Papers

ISSN

1892-753X

Number of pages

40

About Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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