international migration

This paper provides a theoretical framework for estimating the labor migration impact on the economy of sending country. The overall emigration impact includes two effects, which can be calculated separately, i.e., a departure effect and a remittances effect. The departure effect causes a negative impact on the economy by decreasing autonomous consumption. The remittances effect causes a positive impact by increasing disposable income and thus internal consumption and savings and imports. Calculations include the multiplier effect.

Being an objective element of the global economic system, international migration produces a significant impact on the performance of individual countries nowadays. The economic impact of international migration is driven by various factors, primarily the type of international migration (labour migration, refugee migration, family migration, or student migration) and the legislation of a receiving country which determines the ability of international migrants to interact with the host country’s economy and to produce the respective impact.