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The Impact of Migration on Lithuanian Economy in an Ageing Society Context

Author

Listed:
  • Gindra Kasnauskiene

    (Vilnius university)

  • Loreta Vebraite

    (Vilnius university)

Abstract

Because of rapid population ageing Lithuania possesses new economic and social challenges. One of these challenges is the shortage of labour force in the future, which will have a negative impact on the country?s economy. Thus, in this paper the study on impact of one of the significant factors of population ageing - migration - on the economy of Lithuania is conducted. Using a system of variables of net migration, gross domestic product, wage and unemployment rate a structural vector error correction model is developed. The paper also claims that, there is urgent need to implement effective policy means in order to maximize the migration related opportunities and minimize the costs. In addition, while migration can contribute to the growth of Lithuanian economy, it cannot provide by itself a solution to the demographic problems and budgetary implications of an ageing population.

Suggested Citation

  • Gindra Kasnauskiene & Loreta Vebraite, 2014. "The Impact of Migration on Lithuanian Economy in an Ageing Society Context," Proceedings of International Academic Conferences 0802257, International Institute of Social and Economic Sciences.
    • Handle: RePEc:sek:iacpro:0802257
    as

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    File URL: https://iises.net/proceedings/13th-international-academic-conference-antibes/table-of-content/detail?cid=8&iid=030&rid=2257
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    References listed on IDEAS

    as
    1. Vincent Fromentin, 2013. "The Relationship Between Immigration and Unemployment: The Case of France," Economic Analysis and Policy, Elsevier, vol. 43(1), pages 51-66, March.
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    More about this item

    Keywords

    population migration; population ageing; structural vector error correction model; economic impact; migration policy;
    All these keywords.

    JEL classification:

    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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