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International Migrant Remittances in the Context of Economic and Social Sustainable Development. A Comparative Study of Romania-Bulgaria

Author

Listed:
  • Alina Petronela Haller

    (Department of Economics, Romanian Academy Branch of Iaşi + ICES, Gh. Zane, Codrescu 2, 700488 Iaşi, Romania)

  • Rodica Cristina Butnaru

    (Strategy Social and Environmental Responsibility Department, School of Management Sciences, University of Quebec at Montreal, PO Box 8888, Downtown Branch Montreal, QC H3C 3P8, Canada)

  • Gina Ionela Butnaru

    (Department of Management, Marketing and Business Administration, Alexandru Ioan Cuza University of Iaşi, Bulevardul Carol I 11, 700506 Iaşi, Romania)

Abstract

The economic stability is the main goal of every country’s administration, contributing to the decrease of uncertainty, creating an attractive business environment, attracting foreign direct investment and contributing to economic growth, which increases the standard of living, reduces income inequalities, represents a sustainable development for the country and puts an end to the migration process. Migration flows lower the demographic resources of the states going through this process and consequently they compromise the possibility for future generations to support a sustainable economic growth. Migration is a process with an aggressive and alarming manifestation in Romania and Bulgaria, raising the problem of the future capacity of these countries to ensure long-term economic and social sustainability and requiring an analysis framework from a scientific perspective. The current study proposes a comparative study to identify the important determinants of international migration in the EU28 and analyses the impact of remittances on economic growth/stability and income inequality in Romania and Bulgaria—Central and Eastern Europe countries—for the period between 1990 and 2015. The main contribution of the present study consists in emphasising the common determinants of the two countries regarding the migration process and at the same time providing solutions to improve government policies to contribute to the economic and social sustainability. The authors employed a multiple regression model and the correlation analysis, and tested 8 hypotheses for Romania and Bulgaria. The results indicated that the main determinants of the migration process in Romania and Bulgaria are the inflation rate, the income inequality and household consumption expenditure. Furthermore, the results indicated that there is not a direct relationship between the remittances received/capita and GDP/capita growth rate in Romania and Bulgaria. In addition, there is a direct relationship (negative and with average intensity) between the remittances received/capita and price inflation rate in Romania but not in Bulgaria. In the case of Romania and Bulgaria, the results indicate that there is a direct relationship with a similar intensity between the remittances received/capita and the unemployment rate, the household final consumption and income inequality.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1156-:d:140759
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