Here are some economic consequences of migration on place of origin and place of destination.

1. “ From error to error one discovers the entire truth”-Sigmund Freud
Economic Consequences of Migration

2. INTRODUCTION:
• MIGRATION IS PRIMARILY AN ECONOMIC PHENOMENA. PEOPLE MIGRATE
MAINLY DUE TO THE ECONOMIC REASON. [TODARO, 1969 AD]
• BEHIND EVERY MIGRATION, THERE IS MOTIVE ESPECIALLY ECONOMIC
MOTIVES SUCH AS: JOB OPPORTUNITY, ETC [RAVENSTEIN, 1885,1889]
• INTERNATIONAL MIGRATION HAS INCREASED DUE TO THE CAPITALIST
EXPANSION IN THE DEVELOPED COUNTRIES [ WORLD SYSTEM THEORY,
IMMANUEL WALLERSTEIN, 1974]
• SINCE MIGRATION IS TRULY MOTIVATED BY THE ECONOMIC ASPECTS, THERE
ARE ALSO ECONOMIC CONSEQUENCES WHICH ACTS BOTH IN THE PLACE OF
ORIGIN AND PLACE OF DESTINATION

3. ASPECTS OF ECONOMIC CONSEQUENCES

4. ECONOMIC CONSEQUENCES OF MIGRATION ON PLACE
OF DESTINATION AND PLACE OF RESIDENCE
Economic
Incentive
Place of Origin Place of Destination
Labor There will be shortage of labor and
occupation like agriculture will be
based on women,old and child
There will be more labor force
especially skilled.
Raw Material Most of the raw material won’t be
utilized due to the lack of the labour
force.
Most of the raw material will be
produced and utilized due to the
presence of more labour.
Flow of Money It will gain money through Remittances The money flow to another place in
the form of remittances
Opportunity There will be many economic
opportunity
There won’t be too much opportunity
and results unemployment
Economic Growth There will economic growth due to the
remittances.
There would be huge economic growth
due to the huge mass production.
According to the IOM, there are currently more African
scientists and engineers working in the US than there are in all
of Africa. For eg: In Zimbabwe , emigration has reduced the
number of practicing doctors from 1,600 to 400.Also 47% and
70% of the increase in the workforce has been noticed in US and
Europe respectively over the past 10 years
According to the World Bank, in 2012 , remittances totaled of
$529 billion and in 2013 $ 401 billion of money has flowed into the
developing region.
According to Wikipedia Article, after migration welfare for
receiving countries has increased by 5-10% and for sending
countries the welfare has increased by 10% due to the remittances

5. CONTD
…
Economic Incentives Place of Origin Place of Destination
Brain-Drain More and more generations of
skilled labor will migrate.
It will achieve more and more
generation of skilled labor.
Living Standard The living standard of the
family whose member has
migrated will increase.
There are 2 faces:
a. Since, unemployment
increases living standard
decreases.
b. Since, growth of the
economy increases, the
tendency of living standard
will also increase.
Mode of Production (World
System Theory, 1974)
The destruction of traditional
mode of production
The flourishment and
empowerment of capitalist mode
of production.

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