Impact of High-Skilled Migration to the UK on the Source Countries (EU8) Economies

The majority of studies into the economic effects of high-skilled migration focus on aggregate impact on the economic output in the countries of destination. The economic impact of migration of the highly qualified on the economies of the countries of their origin has been examined less. This qualitative research aims to address that gap by identifying the economic effects of high-skilled migration on Central and Eastern Europe, the region which faces many long-term challenges to its economic development. We use the available data from the UK International Passenger Survey for the 2004-2016 period to test whether the outflow of highly qualified workers from the EU8 countries to the UK is detrimental or beneficial for the growth of sending economies in the short and long term. In order to test these hypotheses, econometric time series analysis methods of structural vector autoregression and cointegration were applied. Our results have shown a positive short-term effect of brain outflow on regions’ GDP and wage growth as well as unemployment; on the other hand, we presented empirical evidence in support of the hypothesis of the negative long-term effect of high-skilled migration on EU8 countries’ GDP and wage growth as well as unemployment. These results are fairly robust to imply that a negative view on high-skilled migration from EU8 is broadly consistent with the previous findings of “harmful brain drain” scholars

THE EFFECTS OF DEMOGRAPHIC TRENDS ON ECONOMIC GROWTH IN THE EUROPEAN UNION

The aim of this article is to assess the influence of demographic age shares on changes in economic growth in the EU from 1996 to 2013 using a fixed effects model. The authors hypothesise the demographic variable having a statistically significant effect on the macroeconomic variable. Conclusions and suggestions stemming from the analysis are expected to benefit policymakers and provide guidance to public institutions

Push or Pull: What Drives Emigration from Lithuania?

This article investigates the main economic and non-economic determinants of population emigration from Lithuania. Our study offers a new approach for modelling the push and pull factors considering the push–pull link. We construct the relative variables and deploy mixed models for the macro data of Lithuania and 24 European destinations over 2010–2019. Our findings reveal that such economic variables as relative economic welfare, unemployment and income inequality are the key push–pull factors. The study results indicate that changes in relative welfare have the highest power to change Lithuanian emigration with the main impact recorded the same year, while changes in relative income inequality and unemployment affect fewer emigrants, and it takes one year for the effect to materialise. The obtained higher importance of relative welfare compared to the average wage suggests that the goods and services provided by the state play a role in the personal cost–benefit calculation of prospective emigrants. This study addresses the research gap on the quantitative push–pull factor evaluation, the timing of their impact, connectivity of the push–pull factors and structural changes, providing a foundation for future research on the root causes of emigration

Does Emigration Hurt the Economy? Evidence from Lithuania

This study explores the economic impact of population emigration with special reference to the case of Lithuania. For this reason, we developed a SVAR model and applied related IRF and FEVD tools using quarterly data for the period of 2001-2020. Our findings reveal that a positive shock in emigration is related to lower unemployment. It is also found that the increased emigration is linked to higher real wage growth but with a lower confidence interval. Moreover, our estimates suggest that international out-migration increases real GDP growth in the short term, with no significant effects in the long run perspective. Finally, we found that most of the emigrants-to-be were inactive for a long term prior to departure, which offers a new look into the consequences of Lithuanian emigration, suggesting that the economic losses of emigration could be overstated. This study contributes to the knowledge about the impact of emigration on the economy and specifies directions for further studies in the field

The Causes and the Economic Impact of Immigration: Empirical Evidence for Lithuania

During the last decade,Lithuania, asmost otherpost-soviet countries,demonstrated severely high emigration rates. As a result, the process ofemigration from the country is frequentlyanalysedin empirical studies. Yet, thereisadearth of research on immigrationinLithuania, making it difficult to sayanything about the effects. This paper is an attempt to fill this gap and to examinewhat exactly attracts immigrantsinLithuania and what is the impact that theimmigration flows have on the Lithuanian economy. Two models describing thecauses of immigration were constructed: one–for the situation before thefinancial crisis, another one–after it. In order to determine economic impact ofimmigration on Lithuanian economy some new information was developed, bychecking how (if) the main economic indicators are influenced by the growingextent of immigration