The Impact of Migration on Capital Markets
- 1 Department of Economics, Democritus University of Thrace, Komotini, Greece
- 2 Department of Economics, Democritus University of Thrace, Komotini, Greece
Abstract
Migration is a topic that has always attracted the interest of researchers, policy makers, politicians and the simple people as well, primarily because of its social labor and economic dimensions. In this paper we attempt to identify what may be the impact of migration to the capital markets of the countries that receive the migrants. To do that we use an econometric approach, employing linear regression in order to investigate the relationship between the immigration flows, as measured by the number of immigrants and the capital market variables of interest. These are market capitalization (as a percent of GDP and USD billion), bank deposits (as a percent of GDP and USD billion), public debt (as a percent of GDP and USD billion) and net public debt (in USD billion). We use the Stata econometric software to run these linear regressions with Ordinary Least Squares (OLS). We find evidence that the number of immigrants could have a positive impact to the capital markets of the recipient country, as it is positively correlated with the market capitalization, the bank deposits and the public debt.
- Oberg, S. (1997) Theories on Inter-Regional Migration: An Overview. In: Blotevogel, H.H. and Fielding, A.J., Eds., People, Jobs and Mobility in the New Europe, John Wiley & Sons Inc., New York, 23-48.
- LaLonde, R.J. and Topel, R.H. (1997) Economic Impact of International Migration and the Economic Performance of Migrants. In: Rosenzweig, M.R. and Stark, O., Eds., Handbook of Population and Family Economics, Volume 1, Part B Elsevier Science B.V., 799-850.
- Borjas, G. (1990) Friends or Strangers: The Impact of Immigrants on the US Economy. Basic Books, New York.
- Borjas, G. and Bratsberg, B. (1993) Who Leaves? The Outmigration of the Foreign-Born. Mimeo. (University of California at San Diego, San Diego).
- Bean, F.D., Vernez, G. and Keely, C.B. (1989) Opening and Closing the Doors: Evaluating Immigration Reform and Control. Urban Institute Press, Washington DC.
- Altonji, J.G. and Card, D. (1991) The Effects of Immigration on the Labor Market Outcomes of Less-Skilled Natives. In: Abowd, J.M. and Freeman, R.B., Eds., Immigration, Trade, and the Labor Market, The University of Chicago Press, Chicago.
- Winkelmann, R. and Zimmermann, K. (1992) Ageing, Migration and Labour Mobility. Centre for Economic Policy Research, London. http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=706
- Zimmermann, K.F. (1995) Tackling the European Migration Problems. Journal of Economic Perspectives, 9, 45-62. https://doi.org/10.1257/jep.9.2.45
- Zimmermann, K.F. (1995) European Migration: Push and Pull. International Regional Science Review, 19, 95-128.
- Zimmermann, K. (1994) European Migration: Push and Pull. Presented at the Annual Bank Conference on Development Economics, World Bank, Mimeo. (University of Munich, Munich).
- Jackson, J.A. (1986) Migration. Longman, NY, 79-80.
- Pedersen, P.J., Pytlikova, M. and Smith, N. (2008) Selection and Network Effects-Migration into OECD Countries 1990-2000. European Economic Review, 52, 1160-1186. https://doi.org/10.1016/j.euroecorev.2007.12.002
- Boeri, T. and Bruecker, H. (2000) The Impact of Eastern Enlargement on Employment and Wages in the EU Member States. Report to the European Commission.
- Golder, S.M. and Straubhaar, T. (1999) Empirical Findings on the Swiss Migration Experience. IZA Discussion Paper No. 40.