Cover Staff Discussion Notes
Buy Book in Print
Emigration and Its Economic Impact on Eastern Europe
Author:
Mr. Ruben V Atoyan
Search for other papers by Mr. Ruben V Atoyan in
Current site
Google Scholar Close
,
Lone Engbo Christiansen
Search for other papers by Lone Engbo Christiansen in
Current site
Google Scholar Close
,
Allan Dizioli
Search for other papers by Allan Dizioli in
Current site
Google Scholar Close
,
Mr. Christian H Ebeke
Search for other papers by Mr. Christian H Ebeke in
Current site
Google Scholar Close
,
Mr. Nadeem Ilahi
Search for other papers by Mr. Nadeem Ilahi in
Current site
Google Scholar Close
,
Ms. Anna Ilyina
Search for other papers by Ms. Anna Ilyina in
Current site
Google Scholar Close
,
Mr. Gil Mehrez null

Search for other papers by Mr. Gil Mehrez in
Current site
Google Scholar Close
,
Mr. Haonan Qu
Search for other papers by Mr. Haonan Qu in
Current site
Google Scholar Close
,
Ms. Faezeh Raei
Search for other papers by Ms. Faezeh Raei in
Current site
Google Scholar Close
,
Ms. Alaina P Rhee
Search for other papers by Ms. Alaina P Rhee in
Current site
Google Scholar Close
, and
Ms. Daria V Zakharova
Search for other papers by Ms. Daria V Zakharova in
Current site
Google Scholar Close
Series:
Staff Discussion Notes
Volume/Issue:
Volume 2016: Issue 007
Language:
English
Publication Date:
20 Jul 2016
DOI:
https://doi.org/10.5089/9781475576368.006
ISBN:
9781475576368
ISSN:
2617-6750
Pages:
48
Keywords:
SDN; CESEE country; CESEE emigration; labor force; CESEE emigrant; migration flow; Emigration; remittances; growth; convergence; Eastern Europe; EU migration scenario; remittance inflow; Migration; Income; Labor force participation; Baltics; Western Europe; Europe; EU policy scenario; UN migration scenario; income convergence; impact of emigration; emigration from CESEE; Skilled labor
Legal-disclaimer:
Staff Discussion Notes (SDNs) showcase policy-related analysis and research being developed by IMF staff members and are published to elicit comments and to encourage debate.The views expressed in this Policy Discussion Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy.
Download PDF (2.2 MB) Download Epub
This paper analyses the impact of large and persistent emigration from Eastern European countries over the past 25 years on these countries’ growth and income convergence to advanced Europe. While emigration has likely benefited migrants themselves, the receiving countries and the EU as a whole, its impact on sending countries’ economies has been largely negative. The analysis suggests that labor outflows, particularly of skilled workers, lowered productivity growth, pushed up wages, and slowed growth and income convergence. At the same time, while remittance inflows supported financial deepening, consumption and investment in some countries, they also reduced incentives to work and led to exchange rate appreciations, eroding competiveness. The departure of the young also added to the fiscal pressures of already aging populations in Eastern Europe. The paper concludes with policy recommendations for sending countries to mitigate the negative impact of emigration on their economies, and the EU-wide initiatives that could support these efforts.
  • Collapse
  • Expand
Cover Staff Discussion Notes
Staff Discussion Notes
ISSN:
2617-6750
Publisher:
International Monetary Fund