The Effects of Immigration on the U . S . Economy
Figure 11 . Lawful permanent residents , dependent variables , and recession year .
tional workers become available , capital increases and investment occurs , which promotes expansion and innovation . Therefore , encouraging foreign investment may motivate international enterprises to increase investment , which would in turn improve GDP and may increase job opportunities .
We can see in Figure 11 that immigrants have a negative impact on the GDP growth rate when there is a change of one unit , which is associated with a 2.350e-06 GDP growth rate decline . This indicates that immigrants slightly affect the U . S . economy ; however , there are other factors that could affect GDP growth rate that correlate to immigration . Additionally , immigration numbers negatively impact the unemployment rate when immigrants change by 1 %. This is associated with unemployment rate increasing 1.294 %. Also , as seen in Figure 12 , in a recession year , immigrants have a larger impact than in a non-recession year ; particularly when the immigration number is larger .
Furthermore , immigrants have a positive impact on CPI . In Figure 11 , we can see that when immigration changes 1 %, it is associated with an increase in CPI of 2.59 %. This indicates that the immigration number has a positive impact on consumption , which is significant , as CPI is an important indicator of the U . S . economy . The ability for consumption may denote economic performance and that economic growth is on the rise and individuals are more willing to spend money . Therefore , immigrants have a positive impact on economic performance in the United States .
71