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International Migration and the Role of Remittances in Eastern Europe

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Author Info
Miguel León-Ledesma ()
Matloob Piracha ()

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Abstract

Many studies have addressed the effect of migration on both home and host countries, but few have focused on the effect of the economic flows derived from migration, especially for the Central and East European (CEE) countries. In this paper we analyse the effect of remittances on employment performance for CEE economies. To model the macro effects of remittances on the source country we proceed along the lines of Mancellari et al (1996) who extended the model of Aghion and Blanchard (1994) by adding migration. The impact of remittances on unemployment depends on its effect on productivity growth and entrepreneurial investment. In order to empirically analyse the impact of remittances we estimated a productivity equation using a set of 11 transition countries during the 1990-1999 period. We also analyse the impact of remittances on investment and consumption. Our results show support for the view that remittances have a positive impact on productivity and employment both directly and indirectly through its effect on investment.

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File URL: ftp://ftp.ukc.ac.uk/pub/ejr/RePEc/ukc/ukcedp/0113.pdf
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Paper provided by Department of Economics, University of Kent in its series Studies in Economics with number 0113.

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Date of creation: Jun 2001
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Handle: RePEc:ukc:ukcedp:0113

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Postal: Department of Economics, University of Kent at Canterbury, Canterbury, Kent, CT2 7NP
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Related research
Keywords: Unemployment migration remittances

Find related papers by JEL classification:
E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
O15 - Economic Development, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Russell, Sharon Stanton, 1986. "Remittances from international migration: A review in perspective," World Development, Elsevier, vol. 14(6), pages 677-696, June. [Downloadable!] (restricted)
  2. Dustmann, Christian & Kirchkamp, Oliver, 2001. "The Optimal Migration Duration and Activity Choice after Re-migration," IZA Discussion Papers 266, Institute for the Study of Labor (IZA). [Downloadable!]
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Maurice Kugler, . "Migrant Remittances, Human Capital Formation and Job Creation Externalities in Colombia," Borradores de Economia 370, Banco de la Republica de Colombia. [Downloadable!]
    Other versions:
  2. Mechthild Schrooten, 2005. "Bringing Home the Money - What Determines Worker's Remittances to Transition Countries?," Discussion Paper Series a466, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  3. Dennis Görlich & Christoph Trebesch, 2006. "Mass Migration and Seasonality. Evidence on Moldova's Labour Exodus," Kiel Advanced Studies Working Papers 435, Kiel Institute for the World Economy. [Downloadable!]
    Other versions:
  4. Guisan, M.C. & Aguayo, E., 2004. "Employment, Population and Regional Development in Western and Central Europe. Econometric Models and Challenges of EU Enlargement," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 4(2), pages 129-142. [Downloadable!] (restricted)
  5. Mechthild Schrooten, 2006. "Workers' Remittances to Former Soviet States," Discussion Paper Series a476, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  6. Augustin de Coulon & Matloob Piracha, 2002. "Self-Selection and the Performance of Return Migrants: The Case of Albania," Studies in Economics 0211, Department of Economics, University of Kent. [Downloadable!]
  7. Buch, Claudia M. & Kuckulenz, Anja, 2004. "Worker Remittances and Capital Flows to Developing Countries," ZEW Discussion Papers 04-31, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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