What is it about?
The study explores the impact of remittances (which are funds transferred by migrants to their home countries), as the main mechanism triggered by migration, in the transition countries, and particularly the EaP, in the wake of shocks caused by natural hazards and political conflicts. The geographical and geopolitical position of the EaP countries, in between the EU and Russia, makes them more susceptible to political shocks. Additionally, they have also been affected by numerous natural disasters which made it even more difficult to improve their macroeconomic stabilization and keep a steady economic growth.
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Why is it important?
The findings confirm the remittance-led growth hypothesis and the role of remittances as an important transmission channel for the effects induced by migration in transition countries. Besides their contribution to economic growth, the results stem out the importance of remittances in the aftermath of political and natural shocks in order to help households cope with the shocks and start reconstruction. Finally, the analysis shows that transfers from abroad are particularly important in countries with poorer institutions, such as the Eastern Neighbourhood states.
Perspectives
Whereas the European Neighbourhood Policy aims at preserving stability in the neighbouring regions of the EU, migration may support this goal through remittances. However, whilst migration may support development in their home countries, it is not a sufficient condition. It is only the economic reforms and creating proper institutional conditions that will help unleash the full development potential of migration and lay the foundation of a more sustainable economic growth.
Cristian Incaltarau
Universitatea Alexandru Ioan Cuza
Read the Original
This page is a summary of: Migration and Resilience in the Eastern European Neighbourhood: Remittances as a Mechanism for Boosting Recovery After Shocks, January 2019, Springer Science + Business Media,
DOI: 10.1007/978-3-030-25606-7_16.
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