Estimation of labor migration impact on the economy of sending country
Date
2021-03-01
Journal Title
Journal ISSN
Volume Title
Publisher
Видавництво Львівської політехніки
Lviv Politechnic Publishing House
Lviv Politechnic Publishing House
Abstract
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. The labor emigration impact on GDP is calculated
as a difference between a positive remittances effect and
a negative departure effect. The analysis is conducted for
countries that are not at full employment.
Description
Keywords
international migration, labor emigration, impact estimation, GDP, consumption, savings
Citation
Chernobay L. Estimation of labor migration impact on the economy of sending country / L. Chernobay, A. Yessirkepova, S. Malibroda // Economics, Entrepreneurship, Management. — Lviv : Lviv Politechnic Publishing House, 2021. — Vol 8. — No 2. — P. 1–7.