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The Impact of International Migration on Inclusive Growth: A Review

Author

Listed:
  • Zsoka Koczan
  • Magali Pinat
  • Mr. Dmitriy L Rozhkov

Abstract

International migration is an important channel of material improvement for individuals and their offspring. The movement of people across country borders, especially from less developed to richer countries, has a substantial impact in several dimensions. First, it affects the migrants themselves by allowing them to achieve higher income as a result of their higher productivity in the destination country. It also increases the expected income for their offspring. Second, it affects the destination country through the impact on labor markets, productivity, innovation, demographic structure, fiscal balance, and criminality. Third, it can have a significant impact on the countries of origin. It may lead to loss of human capital, but it also creates a flow of remittances and increases international connections in the form of trade, FDI, and technological transfers. This paper surveys our understanding of how migration affects growth and inequality through the impact on migrants themselves as well as on the destination and origin countries.

Suggested Citation

  • Zsoka Koczan & Magali Pinat & Mr. Dmitriy L Rozhkov, 2021. "The Impact of International Migration on Inclusive Growth: A Review," IMF Working Papers 2021/088, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2021/088
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    Citations

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    Cited by:

    1. Andrej Cupák & Pavel Ciaian & d'Artis Kancs, 2021. "Comparing the immigrant-native pay gap: A novel evidence from home and host countries," EERI Research Paper Series EERI RP 2021/05, Economics and Econometrics Research Institute (EERI), Brussels.
    2. Bettin, Giulia & Massidda, Carla & Piras, Romano, 2024. "The intertwined role of social and financial remittances in new firms' creation," Journal of International Management, Elsevier, vol. 30(1).
    3. Lucchetti, Gabriele & Ruggieri, Alessandro, 2025. "Unlucky migrants: Scarring effect of recessions on the assimilation of the foreign born," Labour Economics, Elsevier, vol. 92(C).
    4. Melina Dritsaki & Chaido Dritsaki, 2024. "Immigration, Growth and Unemployment: Panel VAR Evidence From Ε.U. Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 19928-19963, December.
    5. Matija Kovacic & Cristina Elisa Orso, 2023. "Who’s afraid of immigration? The effect of economic preferences on tolerance," Journal of Population Economics, Springer;European Society for Population Economics, vol. 36(3), pages 1901-1940, July.
    6. Grecu Irina-Maria & Noja Gratiela Georgiana, 2024. "Empirical Analysis of the Effects of International Labor Migration in EU-27 Countries," Proceedings of the International Conference on Business Excellence, Sciendo, vol. 18(1), pages 2751-2765.
    7. repec:grz:wpsses:2021-07 is not listed on IDEAS
    8. Afruza Akter & Kim Hua Tan & Nazri Muslim, 2024. "Versatility of social networking sites in meeting the acculturation needs of migrant populations between 2019 and 2023," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-17, December.

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