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The assignment is about impact of Eurozone policies on the Norwegian economic performance. SO I would like to concentrate on just one policy .I think the best and most topical one is immigration policy ,and their impact on the economic performance of the Norway. Therefore I would need restructuring of the theses and help with writing the main chapters. In the uploaded file you will find the information that wrote until now.

Background of the Study

Immigration and migration has been a major cause of concern in the global economy in the last few years. The economy faces problems as a result of immigration as well as migration. In this report only the impact of immigration on the Norwegian economy has been observed. It has been observed that immigration within an economy takes place due to two different factors namely the push and the pull factors. The push factors include famine, low wages, unemployment, political distortions and discrimination within the home country. On other hand, the pull factor for immigration includes high wages, law and order within the host nation and expected demand for jobs.

This dissertation concentrates on Norway. The Norway economy has several peculiarities in terms of their macroeconomic variable. The level of inflation has fluctuated within a certain range and the level of unemployment has also been in control in spite of the increasing trend in immigration. Hence, through this paper it has been tried to portray the economic condition of Norway and the influence of immigration both directly and indirectly on the economy. It has been seen that the country faces several problems like increase in crime rate, cultural adjustment issues and few such things, which indirectly hampers the economy by dampening the socio-economic conditions of the nation.

The paper has been divided into few parts starting with a detailed background behind the study. Then the report gives a detailed knowledge about the reason, which made us choose this particular topic. The literature review gives an idea about the existing flaws in the system and henceforth the paper proceeds to find out the answers of the research question.

Immigration has been taking place throughout the globe since long back when people were leading a nomadic life. Immigration means the system of travelling to a foreign country with the hope of settling there and starting a new life. EU has been facing problems with migrants in their regions and they expect that the problem is going to persists for long. But they has been trying to curb this problem adopting various policies. On other hand, Norway is one such country that has been facing issues with immigration but since they are outside the purview of EU’s control, they have to fight out their own problems. This dissertation focuses on the impact of EU’s immigration policy on Norway’s economy.

Norway is one of the biggest nations in European region with 5197593 people dwelling in the economy. 94.4% of the total population in Norway is indigenous people whereas 3.6% are people from other European nations and 2% of the population came from other nations. The average GDP growth rate of the country since 1978 is 0.64% but it is 1.1% as of January 2017. The country faced an inflation of 3.47% in the year 2016, which was slightly above the natural level. During the global economic crisis and the recession of 2007-08, Europe was in a devastated condition. At that time, Norway was the least affected nations amongst all other European nations. Statistics reveals that though Norway is not a part of European Union but still it plays an important role in international trade. If we look at the trade statistics, it is seen that the country is engaged in exporting around 15% of EU’s total demand for goods and energy supplies whereas it itself imports around $ 48 billion of goods and services from them.

Rationale of the Study

The nation is yet to become a part of European Union. EU is an organization formed by its 28 member countries from Europe. It looks after the economic and political aspects within the nations. Since, Norway is still not a member country of European Union hence it is unable to reap the benefit of the regulations of Euro-zone. It neither uses the single currency used by the members of Euro-zone nor gets any benefits enjoyed by EU members. The country has its own currency named Krone. There has been vast difference in the trade regulations of Norway and other EU countries but at the same time, there has been a close association between them in other terms. As Norway is not a part of EU, hence, the country does not have any right to vote for or against the rules proposed by EU. Therefore, it has to bear the adverse consequences whenever the rule safeguards the country and the other nations become vulnerable through the trade policy. If Norway had been part of European Union and thereby could reap the benefit of Euro-zone, then it would have seen a rise in their employment level and the level of GDP would increase. On other hand, the nation can expect to get an enormous amount of FDI inflows into their economy is they can manage to become part of EU.

Norway at present has around 5.6% immigrants within their country. However, the country can be benefitted by becoming a part of EU but it also needs to abide by all the policies imposed by them. Since, Norway is not a big nation like Germany or France; therefore, it might so happen that the policies followed by EU are biased towards the big nations whereas the small nations might remain subdued. Migration takes place because of any one or as a combined effect of the political, social and economic factors within the economy.   Usually migration takes place either due to push factor or pull factors. The push factors are generated due to problems existing within the domestic nation, which forces the people to move out of their home country. On other hand, the healthy and flourishing condition of any nation can attract people of the neighbouring nations through the pull strategy.  It has been observed that during 2014, around 1.9 million people immigrated into the EU-28 countries. Similarly, huge bulk of people migrated out of EU and moved in Norway thereby increasing the total population of the country.

Immigration policy is one such policy, which might become a cause of concern for these small nations and Norway in particular. Immigration policy may lead to bulk influx of foreigners within the country and this sudden immigration might cause a scarcity of production, increase in price and joblessness within the economy. Statistical data from 2016 bulletin published by Norway states that during that time there has been an increase in the immigrant percentage within the nation. Approximately 16.3% of the Norwegian population comprises of immigrants from various nations like Polish, Somali, Lithuanian, Pakistani and Swedish. This percentage of immigration was as low as 4.3 during the initial years in 1992. In addition to this problem of immigration, there has been an increase in the population within the country as the immigrants are getting married and starting their own family in Norway.

 The basic problem of Norwegian economy is facing due to this immigration is that of adaptation. It has been seen that the influx of Muslims from different parts of the world into Norwegian economy has led to the problems of adaptability. Their cultural upbringing differed a lot from the natives and from their upbringing. Along with the immigration, not only new people are entering the economy but also there has been transfer of culture within the economy. The Norwegians often finds it difficult in adapting with the new culture and sometime cultural conflicts takes place. In addition, there has been an upsurge in the crime rate within the economy with the increasing trend in immigration. It is obvious that those who are not being able to settle down with a proper job are taking up the wrong path to earn their two square meals a day. As a result, crime rate started rising up in the Norwegian territory. Communal conflict between the Christians and the Muslims also shook the nation. The Muslim community tried to sway the Christians and establish their dominance in the nation.

On other hand, the immigration posed problems by generating and increasing the mental health problems within Norway. In addition, the youth migrants were vulnerable to gambling trap existing in the country. It has been observed that there has been complexity of the Norwegian culture and lack of adaptive capability by the immigrants leads them to have a stressful life. It is under this condition, that the youths are entangled into gambling activity. Statistical data suggests that 4.7% of the immigrants fall into this trap whereas only 0.7% of the Norwegian origin falls into this trap. It is under this circumstance that the importance of this immigration policy on Norwegian economy has been taken into consideration.

The rationale behind choosing this topic clearly highlighted the fact that Norway has been facing multi faceted problems in their economy as an impact of immigration policy of EU. All these problems are inter-related in such a way that it impacts the economy by distorting the macroeconomic variables of the nation.  Since, the problems lies in multi-facet direction hence the purpose of this dissertation is to find out the segment, which gets mostly affected by immigration and the way in which it gets affected. Under this rationale while trying to reach out the chosen purpose of our study, the objective set henceforth is stated as:

This paper has been built up by focusing on the objective to evaluate the impact of euro-zone’s immigration policy on the economic condition of Norway.

Every research conducted always tries to answer some pre-fixed questions or scenarios that are happening in the surroundings. The background or rationale of the study has highlighted the economic and social condition of Norway in the past as well as in the present by using several variables. On other hand, the objectives set in this thesis can be formulated and the answers can be found by framing the objectives into the required research question. The research question of this thesis is:

“How does the EU immigration policy affect the economy of the chosen host country of Norway?”

The structure or the guidelines of the research help in the systematic arrangement of the thesis which should be followed throughout the entire dissertation while trying to reach out to the targeted and expected outcome. The entire research is going to be divided into 5 broad chapters each having individual sub-chapters.

Introduction is the first chapter of this dissertation. This chapter has then be divided into other parts starting with the background of the economy under which this topic has been chosen. After having an understanding of the current background of the economy, this chapter then focuses on the rationale followed by the objectives of the research. The research question is then formulated based on the targeted objectives of the thesis. After stating the research question, the thesis moves on to the next chapter.

The second chapter starts on with the literature survey. Through this literature survey, researches on this same topic and its implication on the economy have been analyzed. The researcher has followed several published article in order to develop knowledge about the chosen topic. On other hand, this literature survey helps in finding out the gap that exists in this genre and thereby shows direction in which the researcher might walk to yield a fruitful result. In addition, this part constitutes of the literatures that showed the economic impact of immigration policy within a country. It focuses on the adverse impact on Norway due to immigration rules of the Euro-Zone.

After the identification of the gaps in research till now, this dissertation then moves on to the third segment and one of the important part of the research. In order to solve the research question the expertise starts collecting data which is going to be analyzed in the next segment. Data collection can usually be done in two ways namely Primary data collection and Secondary data collection. In order to collect primary data, there is a need to understand the existing market, fix a targeted market, and choose a sample size. Then data should be collected from the pre-fixed sample and taken for analysis. In this thesis due to time constraint as well as resources constraint, Secondary data has been used. The data on macroeconomic variables of Norway has been collected from online official websites as published by World Bank, government website, rating agencies and so on.

The fourth chapter of the thesis consists of the analyses and findings that could be drawn from the collected data. In this part, the impact of Euro zone’s immigration policies on the Norwegian economy is going to be analyzed. This immigration system is expected to have a broader impact on the entire economy by changing the key macroeconomic elements like GDP, inflation and unemployment level. It can also cause serious problems by distorting the economic balance with increasing level of crime rate and anarchy within the society. The loss of peace within the society can indirectly become an issue of major concern for the development of the nation.

The fifth and the final chapter try to highlight the findings of the research. It looks upon the fact whether the research question has been answered. In addition, the chapter tries to connote the limitations that it has faced while going throughout the entire research. It also helps the people in understanding the importance of immigration policy and the scope of this study in benefitting the nation. This chapter also highlights the areas, which can be concentrated in future for further research in this domain.

The Kingdom of Norway though not a member of European Union is closely federated to it economically; since European Union allows its citizens to travel across the countries within the internal borders of the continent (except for Britain, Ireland, Cyprus, Bulgaria, Romania) the domestic economy of the countries is bound to be affected. Norway similarly is no exception to this; despite not being a direct member of the organization, the rising population of immigrants in the country has had deep impact in the economy of Norway especially in the recent few years. The lower rate of unemployment in Norway has consistently attracted emigrants from not only the continents of Asia and America but the number of emigrants from other European countries is also notable.

According to a study conducted by Adne Cappelen and Terje Skjerpen the uncontrolled immigration has given rise to several issues in the economic sector of Norway (Cappelen & Skjerpen, 2014). The immigration policy of European Union and the inclusion of Norway in the economic area of Europe since 1994 as well as in the area of Schengen in 2001 have resulted in a much higher rate of immigration in the country. The large number of immigration has brought an inequality in terms of wage distribution because of the increasing number of unskilled emigrant labor force tending to replace the unskilled domestic laborers (Cappelen & Skjerpen, 2014). It has also been seen that many of the immigrants tend to have much higher skills, may be a Phd who result in an employment crisis for the nationals.

European Union has a wide immigration policy and Norway is one of those countries that are known to be the most receptive for emigrants (Schneider, 2015). The huge number of immigration has given rise to unemployment and most significantly has contributed to develop shadow economy. Almost 31 countries in the territory of European Union have seen a growth in shadow economy, which has been the impediment for the development in economic sectors. There has been observed a close link between the increase in immigration and the growth in unnoticed economic activities (Schneider & Enste, 2013); however, Norway has successfully controlled the growth of this illicit economy by considerably reducing currency transaction and increasing the implementation of digital payment system.

Another study on the impact of immigration in the economy of Norway shows that the labor-flow across jobs, occupations, cities and borders has a deep influence on labor economics. The tendency of movement in the work force from a low-payment sector to a higher one has resulted in creating a competitive force in the workplaces as well as equalizing the wages in both the sectors (Borjas, 2014).. This equalization of the value of workers facilitates a greater flexibility in efficient allocating of workers that helps greater productivity in the competitive economy of Norway (Borjas, 2014). Migration in this context plays a significant role to eliminate inefficiencies and to allocate workers where they are likely to perform their best. However, it has been seen that often immigration causes a reduction in the wage scale of native labors and the labor market has to adjust repeatedly (Borjas, 2014). Even after these adjustments have taken place, the relative wage for skilled group has declined.

Another study conducted on economic discrimination caused by immigration demonstrates how without a complete assimilation of the emigrants into the labor market of the host country economic discrimination can arise in terms of wages and living standards. The immigrants usually have a low earning at the time of entering into the country and this gap gradually widens over the time (Dancygier & Laitin, 2014). This earning gap becomes an obstacle for the assimilation of the foreign population in the country. Besides employment gaps, the division in the participation rate is also substantially striking. This study also explores the required contribution by the political regimes and institutions in diminishing the hindrances of economic integration of the emigrants (Dancygier & Laitin, 2014).

A study conducted on immigration, GDP and unemployment in the perspective of OECD countries significantly points out how a host country’s economy becomes deeply impacted by the entry of emigrants. The study directed by Konya’s approach of Granger casualty evaluation, clearly mentions that Norway’s growth has attracted immigration in the country while ironically it has not helped the growth of the nation. According to the statistics, a large number of immigrants in the European countries including Norway are unemployed and they seem to be a burden on the welfare states (Boubtane, Coulibaly & Rault, 2013).. Norwegian born youth to the parents who had been immigrants are a group in Norway that faces a considerable rate of unemployment even today (around 4.2%) greater than the rate of unemployment in the same age group of the original Norwegians (Boubtane, Coulibaly & Rault, 2013).

One more study categorically shows how immigration has its positive as well as adverse effects on the labor market of the host country of Norway. Due to the raised skill heterogeneity caused by immigration the natives seem to gain from this having an overall increase in their net income; although distributional effects are there (Ortega & Peri, 2013). The study has also found out that economic integration of regional Europe has greatly influenced the pattern and extent of immigration to different European destinations. It has been estimated that about a 10 percent hike in per capita income of a region results in an increase of 7.6 percent immigration there (Ortega & Peri, 2013). This flexibility has been evaluated as double for intra European Union emigration flows, which mirrors the integrated structure of the European Union along with the countries who have signed EEA agreement with EU such as Norway.

Mathias Czaika and Hein de Haas in a study has argued that migration does not only cause a complicated economic aftermath in the host countries but the reasons behind this are very much grounded on structural and financial factors. Imbalance in labor market and unequal wealth distribution among countries acts as a majr catalyst for migration (Czaika & Haas, 2013). Since the policy of European Union facilitates free movement of its citizens in the territories affiliated with it the continuous movement of people has been possible; thus, the constant inflow of labor source highly affects the job market of the host countries and may cause fluctuation in the economy (Czaika & Haas, 2013). Although several immigration policies have been made keeping this in mind, those seem to have little impact on the migration rate. The national borders of Europe have gone beyond control; in addition to this, the immigration regulating ability has shrunk considerably because the will to curtail it by the states has become minimized (Czaika & Haas, 2013). Despite the political will to minimize immigration, the increasing demand of both low skilled and efficient laborers in the market of the host countries has made the policies of European Union rather ineffective.

Norway since 1975 has seen immigration in the country; initially the immigration was from Asian countries like Pakistan and Turkey majorly because Norway’s economic steadiness, security and welfare character had attracted them. The economic impact of prolonged migration has been explored in another study conducted by Giovanni, Levchenko and Ortega. A country’s economy remains fixed and when in this situation the migrants force themselves in the economy it has to bear some inevitable consequences (Giovanni, Levchenko & Ortega, 2015). One the other hand, immigration can also bring about some positive impact in the economy of the host country; it affects product variety increasing the size of the market and naturally varied range of products become available for consumption as well as to be used as intermediate goods (Giovanni, Levchenko & Ortega, 2015). Again, immigration not only causes a source of employment for the emigrants but a part of the welfare due to reallocation is also proved beneficial for the native residents through remittances.

Another study concerning the effects of immigration on the OECD countries firmly states that if a country has a large number of graduates in the emigrant population it either will assist an increase in the wages as well as the employment of the non-skilled and less educated or may hurt the average wage of the natives (Docquier, Ozden & Peri, 2014). The effects in the employment sector seem to be the same as wage effect found in the above-mentioned literature because it is also affected by the increase or decrease in the fields of minor productivity of native laborers due to the fluctuations in the immigration level (Docquier, Ozden & Peri, 2014).

The literatures on the economic impact of immigration in Norway mainly address the effects on the job market and on the way of living of the citizen. Immigration always has impacts on the everyday life of people but that may take some time to be reflected. One such aspect is the food habits of people. Migration of people has a huge impact on the foods and eating habits of a country. That leads to a change in the food consumption pattern, and that affects the socio-economic factors of the country. Oslo Immigrant Health study found out that a majority of the total immigrants are from Sri Lanka and Pakistan. Hence, a lot of Sri Lankan and Pakistani groceries and restaurants have been established in Oslo. For example, maximum Sri Lankans prefer to eat more milk, butter, meat, margarine and potatoes. More than half of total Pakistanis prefer to have more of oil, fish, meat and potatoes. Both the groups decreased the consumption of lentils and beans (Popovic-Lipovac & Strasser, 2015). This leads to a fall in the demand for those products, consequently production falls. The effect on agriculture is a socio-economic impact of immigration. Again, due to this immigration, the native people are getting the exposure to different types of foods from other countries. That helps to boost the restaurant business of Norway and economy grows. Hence, a number of socio-cultural and demographic factors may alter the changes in food habits after migration.

Migration also brings about some substantial health impacts. This also has economic consequences in the society. According to the studies done by WHO, it has been seen, that when people migrate to other countries, they carry some inherent diseases with them. The most common health problems include accidental injuries, psychological disorder, drug abuse, violence, HIV, diabetes, infectious diseases, gastrointestinal illnesses, burns, hypothermia, cardiovascular events, pregnancy- and delivery-related complications and hypertension. Female migrants often face specific challenges, particularly in maternal, newborn and child health, sexual and reproductive health and violence. Sometimes the immigrants also get affected by new environment. Bradby et al. showed in their book ‘Public health aspects of migrant health: a review of the evidence on health status for refugees and asylum seekers in the European Region’, that, the connection between population mobility, their health issues and economic impacts of that. If the workforce of a country is not healthy, their production and economic growth are bound to suffer (Bradby et al., 2015). Mental health of citizens is also an essential factor in the economic growth of the country. In recent times, when immigration has become a major concern in Norway and throughout the world, meeting the health challenges through global cooperation and collaboration has become a part of the foreign policies of many countries. Chamila T Attanapola shows in his article that, in Norway, health policies governing the health-care services are unambiguous about fairness in terms of accessibility, utilization and outcomes (Attanapola, 2013). The government must provide good health-care policies to the citizens as well as to the immigrants. The documents that have been analyzed, give emphasis to equity as the total value of the Norwegian health-care system, cutback of communal inequalities as a main target and that vulnerable people should be prioritized (Håkonsen & Toverud, 2012).

In today’s world, migration is a socio economic issue that cannot be ignored. The immigration to Norway increased significantly during 1951 to 2010 (Statistics Norway, 2011). The Migration Policy Debate in shows that migration has some positive effects on Norway’s economy, such as, immigrants boost the working-age population, make labor market flexible, they contribute in the human resource development with their skills, they also help to enhance the technological progress of the host country (OECD, 2014). The immigrants also pay taxes and make contributions in social development plans than the benefits they receive (Borjas, 2014).

Bratsberg, Raaum & Røed, say in their book that, the education level of immigrant children has a long term effect on the country’s economy. Employment and wages of the immigrants from any low income country tend to be less than that of the citizens’. Their education level also differs and that leads to the inequality. Thus, they fall into the category of low income labor class who can be exploited for low wages. In the long term, the next generation of the immigrants become part of the host country and contributes in their economic progress. This is happening in case of Norway too. Hence, the Norwegian government has focused on the education facilities provided to the immigrant children (Bratsberg, Raaum & Røed, 2012).

Immigration also has impacts on the tourism of the host country. People who migrate to a new country and settle there, eventually they contribute in the growth of the tourism industry. The case is same everywhere including Norway. Newsome, Moore and Dowling mentioned in their book ‘Natural area tourism: Ecology, impacts and management (Vol. 58)’, that the major population of Pakistani and Sri Lankan immigrants spends money in travelling, not only in Norway, but in the whole Europe. When the immigrants overcome the unrest and uncertainties in their lives, their desire to travel takes them to places. Sometimes many family members who stayed back in their native country come to visit them. Hence, in the long term, immigrants do travel to new places and that helps to improve the growth of the tourism industry in Norway (Newsome, Moore & Dowling, 2012).

Hence, it can be concluded that, migration has both positive and negative effects on the economy of a country. It has cultural impacts too. Immigration has become a rising concern in the world, and Norway is no different. Refugees from the Middle East are pouring into Europe and in the Scandinavian countries. It has got many economic impacts and those have already been discussed by various authors and some of the issues have been addressed in the above review.

The research conducted in this paper is of explanatory in nature. This paper has been constructed by checking into the trend in recent GDP growth rate and in the inflation rate and unemployment rate. The way these components have changed over the time can be analyzed with respect to immigration policies of the European Union. In-spite of the fact that Norway has never been a part of EU but strongly faces the influence of the EU policies in their nation. The following three graphs help us in analyzing the economic situation of Norway since 2000. The three graphs shows GDP growth rate, inflation rate and unemployment rate of Norway respectively.

The graph above highlights the fact that there have been two sharp declines in the economy within the time-period of 2000 to 2015. The graph shows a decline in the GDP growth rate since 2000 until 2003 and then it started rising upwards. After 2007, from 2008 to 2009, the Norwegian nation saw a sharp decline in its growth rate of GDP. Even this was the period where GDP growth rate saw a negative of around 1.5%. This was due to the normal global economic crises that started in the U.S economy. But since then there has been disruption in the GDP growth rate from 2010 onwards.

In the second figure, the inflation rate has been highly volatile throughout the chosen time-period. A strange character has been noticed in case of Norway. During 2008 when the whole economy was facing inflationary pressure, Norway has seen a downfall in the rate of inflation in the economy. On other hand in recent times with the increase in immigration, there has been an escalation in the inflation rate in the economy. This clearly indicates that the nation is adversely impacted by the immigration.

Norway has been able to curb the unemployment rate for a long period but because of global crises it increased to around 3.8% but since then the economy could not curb and bring its inflation rate below 3%. The level of unemployment could not be curbed due to the constant immigration within the economy. As more of people are getting into the economy, the numbers of unemployed are increasing.

The graph above clearly highlights that the Norwegian economy ranks 1st in HDI with the value of 0.944 during 2014. Over the period of 1990 to 2014, the HDI increased from 0.8 to 0.944 that is it was already in a good stage during 1990 and has improved to the best possible situation. On other hand if the GDI is taken into consideration, then it can be stated that Norway with 0.996 point shows that more the economy is unbiased and does not show discrimination between the people based on gender.

The performance of the macro economic indicator has shown that there exists volatility in the market in terms of inflation. Sine inflation is inversely related to unemployment hence it can be stated that volatility in the job market also exists. The following two figures shows the absolute number of immigrants in the Norwegian economy as calculated on 1st January 2016.

The data above clearly shows that 16.3% of the total Norwegian population consists of immigrants and children born to these immigrants. This implies that there has been a tendency of these immigrants to expand their families in Norway. This is indeed a serious issue for the Norwegian inhabitants. In addition to it, the data also suggests that EU alone is responsible for 7.2% of the immigration in Norway. Other than EU nations, people from every corners of the world are finding interest in migrating in the Norwegian economy. The diagram below highlights the figures in the given table.

The graphical representation of the immigration status of Norway clearly indicates that there has been an upsurge in the influx of people since 2004. After 2008, the immigration rate increased and reached a new height. Majority of the immigrants are from those countries who are involved in EU. A bulk of immigration also takes place from Asia, mainly from Turkey. It has been observed that approximately 10 thousand immigrants entered the economy from Syria during 2015. The consequences of this immigration have been described as follows under the following sub-headings.

Demand for jobs: The increase in immigration increased the demand for jobs within the Norwegian economy. Earlier back in 1957, the country used to follow immigration rules which was very liberal in nature. According to the policy, it was said that the immigrants should be eligible for receiving the job and some place where they can reside before they receive permission from the government to reside within the economy. In the earlier days during 1980s it has been observed that due to immigration Norwegian economy benefitted as the immigrants can be absorbed within the growing economy and they can be utilized as a chief source of labor. The economy saw an upsurge in the level of GDP by employing them. But there has been several changes in the economy within a span of 10 years. According to the Schengen Agreement, there has been significant increase in the immigration within the nation. This created a serious impact in the labor market. An interesting thing has been observed in the Norwegian labor market that is though the economy has been passing through several problems but still it managed to curb the unemployment problem. As of 2012, the unemployment rate was as low as 3.5% within the economy. On other hand, in contrary to the expected problems of unemployment it has been observed that the nation is expected to absorb more employees in three of their sectors namely, gas, oil and construction industry.

Increase in Crime rate: It has been seen that the economy has been facing an upsurge in the crime rate. It can be said that it does not have a direct impact on the economy but if the indirect consequences can be considered then this issue seems to create a huge problem in Norway. The crime rate is influenced by the existing inequality within the nation Though Norway has very less percentage of unemployment and inflation but it has inequality existing within the economy.  Recently the main problem that Norway has been facing is that of illegal immigrants settling within the economy. In addition, the country has been facing high level of employment through jobs provided to immigrants but the locals are facing high level of competition and this is leading to agitation amongst the youths. The immigrant people are also bringing in new cultures along with them and the inhabitants of Norway is seeking clash with them leading to chaos within the economy. This seriously hampers the productive capacity of the different organizations within the nation.


 After going through the entire paper, few things can be clearly highlighted so that Norway government can keep the condition of the economy as it is at present. There are few things that the country need to take care of like to control of illegal immigration. In addition, the country also needs to take care of trafficking that exists as a part of the parallel economy within Norway. If the country can successfully do this then more of the women is going to be safer in the economy. On other hand, the government should take initiative so that the nation can get potential, skilled people in their workforce. The influx of people also leads to the cause of collapse of the environment of the nation. Hence, the government should also look into the sustainability issues so that it can ensure that the nation does not face any man-made disaster. The findings showed that the economic condition of Norway has induced people to come and settle in the country. At present, the economy is running at its full capacity and it is advisable that the government should unify and implement strict immigration policy so that the people of EU cannot over-burden the nation and distort the economic condition.


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