Free Movement; The Economic Effects of Net Migration within the European Union

Abstract

In the European Union increased aversion towards immigration is clearly seen. At the same time one of the EU’s foundations is that of free movement, which is backed by economic theory of efficient resource allocation. This thesis researches the effects of net migration within the EU on GDP per capita for EU countries from 1998 through 2012 using a fixed effects panel data model. A clearly significant and positive effect of net migration on GDP per capita is found, contrasting the pessimistic public opinion and offering partial support in favor of the European Union’s free movement stance.