ECONOMIC EFFECTS OF MIGRATION - REMITTANCES AND GDP

Abstract

The various theories concerning migration are demonstrating that migration is a complex phenomenon, with equally complex and diverse implications. At the same time, society is in constant change, and major shifts at the international level could generate new migratory flows or different perspectives on this phenomenon. The effects of migration manifest in various fields, and the sciences concerned with migration address them specifically in their areas of influence. The most evident consequences appear from a socio-economic perspective. Labour emigration has had significant economic impacts, including reductions in GDP, wage shifts and a weakening of innovation potential and while remittances provide some financial relief, they are insufficient to offset the broader challenges created by labour shortages. The negative long-term effects on competitiveness and productivity underscore the need for comprehensive policy responses to mitigate the economic consequences of emigration. Romania has one of the largest diasporas in Europe, and the economic effects of this migration are vast. By choosing to analyze these two components – GDP and remittances, we can capture both the losses and benefits generated by migration for Romania’s economy. The study of GDP reflects the losses in terms of internal production, while the analysis of remittances shows how these external financial flows can contribute to the stabilization and regional economic development. By focusing on GDP and remittances, our paper will provide a well-founded perspective on the real impact of migration on Romania's economy, using specific data and relevant economic analyses to highlight both the challenges and opportunities.

Keywords

• emigration
• gdp
• remittances
• permanent migration