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The Relationship between Workforce Migration and the Basic Macroeconomic Variables of the Countries from Central Eastern Europe with a Focus on Bulgaria

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  • Gancho Ganchev
  • Mariya Paskaleva

Abstract

In order to establish a relationship between the labor market and migration, we consider the following 11 countries: Bulgaria, Romania, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Slovenia, Hungary, and Croatia. The explored period is 2000-2017. The following methodology is applied: namely VAR methodology. We prove that in Bulgaria, unlike other post-communist EU Member States, wage is the foremost factor governing the international migration of the labor force. The research reveals that foreign direct investments have a strong impact on labor productivity, wages, respectively on emigration and labor immigration. In our study we advocate a policy of accelerating income growth, combined by the introduction of a tax-deductible minimum.

Suggested Citation

  • Gancho Ganchev & Mariya Paskaleva, 2019. "The Relationship between Workforce Migration and the Basic Macroeconomic Variables of the Countries from Central Eastern Europe with a Focus on Bulgaria," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 4, pages 45-69.
    • Handle: RePEc:bas:econst:y:2019:i:4:p:45-69
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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