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

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  • Viorica Chirila

    (University “Alexandru Ioan Cuza” of Ia?i, Ia?i, Romania)

  • Ciprian Chirila

    (University “Alexandru Ioan Cuza” of Ia?i, Ia?i, Romania)

Abstract

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.

Suggested Citation

  • Viorica Chirila & Ciprian Chirila, 2017. "The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(46), pages 696-696, August.
    • Handle: RePEc:aes:amfeco:v:46:y:2017:i:19:p:696
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    References listed on IDEAS

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    Cited by:

    1. Alina Petronela Haller & Rodica Cristina Butnaru & Gina Ionela Butnaru, 2018. "International Migrant Remittances in the Context of Economic and Social Sustainable Development. A Comparative Study of Romania-Bulgaria," Sustainability, MDPI, vol. 10(4), pages 1-34, April.
    2. Mihai PĂUNICĂ & Alexandru MANOLE & Cătălina MOTOFEI & Gabriela - Lidia TĂNASE, 2020. "Life Expectancy from the Perspective of Global and Individual Wealth and Expenditures: A Granger Causality Study of Some Eu Countries," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 170-184, December.
    3. Mihai Paunica & Alexandru Manole & Catalina Motofei & Gabriela-Lidia Tanase, 2021. "Resilience of the European Union Economies. An Analysis of the Granger Causality at the Level of the Gross Domestic Product," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 23(Special15), pages 914-914, November.
    4. Bucevska Vesna, 2022. "Impact of Remittances on Economic Growth: Empirical Evidence from South-East European Countries," South East European Journal of Economics and Business, Sciendo, vol. 17(1), pages 79-94, June.

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    More about this item

    Keywords

    remittances; international migration; emigration of labour force; investments; gross domestic product; Granger causality; Romania.;
    All these keywords.

    JEL classification:

    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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