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Income and Distribution Effects of Migration and Remittances: an Analysis Based on CGE Models for Selected CIS Countries

Author

Listed:
  • Aziz Atamanov
  • Matthias Luecke
  • Toman Omar Mahmoud
  • Roman Mogilevsky
  • Kseniya Tereshchenko
  • Natalia A. Tourdyeva
  • Ainura Uzagalieva
  • Vitaly Vavryschuk

Abstract

This paper analyzes the direct and indirect income effects of international labor migration and remittances in selected CIS countries. The analysis is based on computable general equilibrium (CGE) models for Moldova, Ukraine, Georgia, Kyrgyzstan, and Russia. All net emigration countries would experience a sharp contraction of private consumption in the absence of remittances. In Russia, the main effect of immigration has been to hold down the real wage (as potential capital stock adjustments in response to immigration are not reflected in our comparative-static modeling framework). The paper concludes that because of the important contribution of migration and remittances to stabilizing and sustaining incomes in many CIS countries, enhanced opportunities for legal labor migration should figure prominently in any deepening of bilateral relations between CIS countries and the European Union under the European Neighborhood Policy.

Suggested Citation

  • Aziz Atamanov & Matthias Luecke & Toman Omar Mahmoud & Roman Mogilevsky & Kseniya Tereshchenko & Natalia A. Tourdyeva & Ainura Uzagalieva & Vitaly Vavryschuk, 2009. "Income and Distribution Effects of Migration and Remittances: an Analysis Based on CGE Models for Selected CIS Countries," CASE Network Reports 0086, CASE-Center for Social and Economic Research.
  • Handle: RePEc:sec:cnrepo:0086
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    File URL: http://www.case-research.eu/upload/publikacja_plik/24413018_CNR_86_final.pdf
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    References listed on IDEAS

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    1. Mihaly Simai, 2006. "Poverty and Inequality in Eastern Europe and the CIS Transition Economies," Working Papers 17, United Nations, Department of Economics and Social Affairs.
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    Cited by:

    1. Tom Coupé & Hannah Vakhitova, 2013. "Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries. Country report: Ukraine," CASE Network Studies and Analyses 0464, CASE-Center for Social and Economic Research.
    2. Marek Dabrowski, 2008. "Policy Challenges Faced by Low-Income CIS Economies," CASE Network Studies and Analyses 0375, CASE-Center for Social and Economic Research.

    More about this item

    Keywords

    CIS countries; labor migration; CGE model; system transformation;

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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