Labour Migration and Remittances: Current Trends in Times of Economic Recession

Abstract

This paper introduces certain trends and links between labour migration and remittances, during the current global economic crisis. Based on available data, it can be stated that the current economic crisis has had/will have a short-term impact on remittance transfers to the developing regions that are dominant receivers of this type of financial resource. Remittances clearly represent the most stable source of finances for stimulating development in poor countries, in comparison with other potential sources for financing development, even in times of economic recession or crisis and at both regional and global levels. Moreover, in harmony with Borjas’ (1994) concept, an analysis of “immigration surplus” was carried out. It clearly shows that labour migration does not constitute a burden for the economy of a relatively small Central European country, such as Czechia, and that the overall effect for the target economy is positive.