The Influence of Remittances at the Macroeconomic Level in Romania: Causality in the Sense of Granger

The Influence of Remittances at the Macroeconomic Level in Romania: Causality in the Sense of Granger

Mihaela Oprea
Copyright: © 2022 |Pages: 14
DOI: 10.4018/IJSEM.299424
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Abstract

The impact of remittance in local and national economy is not known enough, even though the migration process amplified, due to few studies regarding the patterns and impact of migration, conditions and processes which lead to migration decision, contribution of remittance revenues for sustainable development of local economies and the potential of employment growth lead to a decrease in rural-urban migration and a potential increase in number of emigrants returning to Romania. The present research proposes the analysis of the impact of funds transfers made by Romanian emigrants at macroeconomic level.
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Approaches Of The Causes And Effects Of Migration

Even though one of the reasons of migration is reduction or elimination of poverty by the contribution of remittances and the transfer of knowledge, migration doesn’t have only positive effects. In the actual economic context, the countries of destination are advantaged with migration phenomenon, by cutting down the deficit of labour force, sometimes even leading to a growth in the qualification level human capital (Chivu L. et al, 2020), while increasing population density may cause increased use of natural resources and environmental pollution, affecting the quality of human life and the environment (EEA, 2016). Beside the positive economic effect of remittances (Massey et al., 1999), countries of origin face a „brain drain” and a decrease in a workforce (Racovitan & Chivu, 2019), because of the high-level trend of emigration among young and educated people (Pavelescu, 2007). According to a study, the loss of this segment of human capital “is not likely to strengthen the foundations of sustainable development on its three pillars” (Vasile & Zaman, 2005).

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