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Immigration in Cyprus: An Analysis of the Determinants

Author

Listed:
  • Panayiotis Gregoriou

    (Economics Research Centre, University of Cyprus)

  • Zenon Kontolemis

    (Ministry of Finance, Cyprus)

  • Maria Matsi

    (Ministry of Finance, Cyprus)

Abstract

Understanding international migration trends is of great relevance for policy making. Migration affects the labour market, competitiveness, and growth of a country. It has social, as well as economic repercussions. This is especially true for a small, open economy like Cyprus. Thus, the ability of a country to correctly understand and predict migrant flows from other countries serves as a valuable tool for the design and implementation of economic and social policies. The purpose of this paper is to analyze the factors, economic and non-economic, that drive international migration flows towards Cyprus. For this purpose, we follow an econometric approach, using a newly constructed dataset of 52 “sending” countries, covering the period 1998-2006. Our results show that not only economic, but other factors as well, may influence a person’s decision to migrate. Income levels and income gaps appear to be a significant driving force of migration towards Cyprus. The same cannot be said, however, about labour market conditions. In addition, non economic factors such as a common spoken language between “sending” countries and Cyprus, the distance between them and “network effects” generated from the stock of migrants in Cyprus, are among the major factors influencing a person’s decision to migrate. Interestingly, however, we do not find a similar link between migration and political factors, nor between migration and climatic conditions.

Suggested Citation

  • Panayiotis Gregoriou & Zenon Kontolemis & Maria Matsi, 2010. "Immigration in Cyprus: An Analysis of the Determinants," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 4(1), pages 63-88, June.
    • Handle: RePEc:erc:cypepr:v:4:y:2010:i:1:p:63-88
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    References listed on IDEAS

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    1. Herbert Brücker & Boriss Siliverstovs, 2006. "On the estimation and forecasting of international migration: how relevant is heterogeneity across countries?," Empirical Economics, Springer, vol. 31(3), pages 735-754, September.
    2. Bauer, Thomas K. & Zimmermann, Klaus F., 1999. "Assessment of Possible Migration Pressure and its Labour Market Impact Following EU Enlargement to Central and Eastern Europe," IZA Research Reports 3, Institute of Labor Economics (IZA).
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    1. Serhat Yüksel & Shahriyar Mukhtarov & Ceyhun Mahmudlu & Jeyhun I. Mikayilov & Anar Iskandarov, 2018. "Measuring International Migration in Azerbaijan," Sustainability, MDPI, vol. 10(1), pages 1-15, January.

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