Exploratory Research 2012

Migration: Do benefits outweigh costs?

Lilit Meshchyan’s research is focusing on the influence that migration has on the development of donor countries. More precisely, the effect of emigration on the economic growth based on a database on CIS and CEE countries is tested empirically. To test the null hypothesis that emigration is positively correlated with economic growth, a panel model was constructed using annual data for 24 CIS and Central and Eastern European countries. The main findings indicate that emigration reduces productivity and economic growth and remittances, even if they are spent on consumption, have income multiplier effects. The author has also studied the social impact of emigration in Armenia, indicating that there is a gap between expectations of return migrants from experiences abroad and the real situation upon return. Moreover, although inflows of remittances to Armenia are significant their effect on long-term economic growth is doubtful, as they are mainly consumed for living expenses.