The Relationship between Workforce Migration and the Basic Macroeconomic Variables of the Countries from Central Eastern Europe with a Focus on Bulgaria

Gancho Ganchev and Mariya Paskaleva

Economic Studies journal, 2019, issue 4, 45-69

Abstract: In order to establish a relationship between the labor market and migration, we consider the following 11 countries: Bulgaria, Romania, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Slovenia, Hungary, and Croatia. The explored period is 2000-2017. The following methodology is applied: namely VAR methodology. We prove that in Bulgaria, unlike other post-communist EU Member States, wage is the foremost factor governing the international migration of the labor force. The research reveals that foreign direct investments have a strong impact on labor productivity, wages, respectively on emigration and labor immigration. In our study we advocate a policy of accelerating income growth, combined by the introduction of a tax-deductible minimum.

JEL-codes: G32 H20 H50 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:bas:econst:y:2019:i:4:p:45-69

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