The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth

The Central and East European countries are affected after the fall of the communism, by the international migration for work towards the developed countries. The adherence to the European Union and the lift of restrictions on the labour market in Western Europe facilitated the short-term and defini...

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Main Authors: Viorica Chirila, Ciprian Chirila
Format: Article
Language:English
Published: Editura ASE 2017-08-01
Series:Amfiteatru Economic
Subjects:
Online Access:http://www.amfiteatrueconomic.ro/temp/Article_2652.pdf
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author Viorica Chirila
Ciprian Chirila
author_facet Viorica Chirila
Ciprian Chirila
author_sort Viorica Chirila
collection DOAJ
description The Central and East European countries are affected after the fall of the communism, by the international migration for work towards the developed countries. The adherence to the European Union and the lift of restrictions on the labour market in Western Europe facilitated the short-term and definitive emigration. The temporary and definitive departure of a part of the labour force from the emigration countries led to a significant flow of remittances. Being viewed as the main gain of the loss of labour force, remittances are important at macroeconomic level to the extent in which they bring in the receiving country economic growth. The emigration of the labour force may have a positive or a negative influence on the economy of a country according to the way in which remittances received are used by emigrants. This study analyses the impact that the remittances have on the economic development of the country, on investments and exports in Romania. The characteristics of macroeconomic variables used require, for the econometric analysis, the determination of the Granger causality by means of the Toda and Yamamoto’s procedure (1995). The results obtained confirm that remittances do not Granger cause either the economic development of Romania expressed in the GDP, or the investments or the exports.
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spelling doaj-art-6113222df95f474f9cdd2572f8a3ea442025-08-20T03:34:57ZengEditura ASEAmfiteatru Economic1582-91462247-91042017-08-011946696710The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic GrowthViorica Chirila0Ciprian Chirila 1University “Alexandru Ioan Cuza” of Iași, Iași, Romania University “Alexandru Ioan Cuza” of Iași, Iași, Romania The Central and East European countries are affected after the fall of the communism, by the international migration for work towards the developed countries. The adherence to the European Union and the lift of restrictions on the labour market in Western Europe facilitated the short-term and definitive emigration. The temporary and definitive departure of a part of the labour force from the emigration countries led to a significant flow of remittances. Being viewed as the main gain of the loss of labour force, remittances are important at macroeconomic level to the extent in which they bring in the receiving country economic growth. The emigration of the labour force may have a positive or a negative influence on the economy of a country according to the way in which remittances received are used by emigrants. This study analyses the impact that the remittances have on the economic development of the country, on investments and exports in Romania. The characteristics of macroeconomic variables used require, for the econometric analysis, the determination of the Granger causality by means of the Toda and Yamamoto’s procedure (1995). The results obtained confirm that remittances do not Granger cause either the economic development of Romania expressed in the GDP, or the investments or the exports.http://www.amfiteatrueconomic.ro/temp/Article_2652.pdfremittancesinternational migrationemigration of labour forceinvestmentsgross domestic productGranger causalityRomania.
spellingShingle Viorica Chirila
Ciprian Chirila
The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth
Amfiteatru Economic
remittances
international migration
emigration of labour force
investments
gross domestic product
Granger causality
Romania.
title The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth
title_full The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth
title_fullStr The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth
title_full_unstemmed The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth
title_short The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth
title_sort analysis of romania s external migration and of the causality between remittances and romania s economic growth
topic remittances
international migration
emigration of labour force
investments
gross domestic product
Granger causality
Romania.
url http://www.amfiteatrueconomic.ro/temp/Article_2652.pdf
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