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Economic impact of emigration

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economic impact of emigration on the country of origin and the country of destination

Oct 17th, 2017

Impact of Emigration

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Emigration is an action where an individual leaves his country of residence and goes to live in a foreign country. People move from mother countries because of different reasons like, in search of jobs, business opportunities, and education and also in search of peaceful regions (Thomas J.2007).

Emigration has both positive and negative economic impact on sending country and receiving country. Emigration helps to reduce on unemployment leading to an increased income to the remaining workers. By this the income of people increases hence raising the living standards of the people in that particular country.  Emigration also leads to increase cost of production as the cost of labor goes up as a result of losing qualified and well trained individuals to other countries.

It is estimated that around 200 million people are living in countries that are not theirs. This has led to increased general flow of capital back to their home country. This has led to increased foreign exchange. People are sending back home.

The flow of skilled labor from one nation to another has led to reduces production because the country is losing people who have been trained and are skilled in different fields of production (Michael H 2012). Mother nations especially the developing nations are losing such skilled labor to developed countries where they go in search of greener pastures.

To the receiving country, this has led to the increase in production as the country is receiving more skilled labor, which is ready to work. This has led to increased income by the receiving countries. The country receiving this people also lose a lot to the sending country because the emigrants do send much of their income back home for investments.

Emigrants have also made a great contribution to the economic growth the receiving country through innovations. The innovations by immigrants, for example in the USA have led to the improvement of lives of in-born people by proving them with jobs and business opportunities. Innovations are the back born of the economy, this leads to the fast growth of the economy.

Business men have relocated their businesses to the countries they see that the cost of production is low. This has led to the sending countries loosing on incomes from these companies hence reduced rate of growth. This as a result is a gain to the receiving country as the level of production increases and also proving job opportunities to the residents hence reduction on the unemployment rates.

Emigration as we have seen has both the positive and negative impacts on both the sending and receiving country. What these countries they need to is to have the balance of all this, this will enable them to have a balance of the positive impacts and the negative impacts.


Thomas J. Espenshade (2007) Keys to Successful Immigration

Michael H. Crawford, Benjamin C. Campbell , (2012) Causes and Consequences of Human Migration

May 18th, 2015

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