Population Literacy and ICT Skills: Drivers of Net Migration Growth

Aleksy Kwilinski, Oleksii Lyulyov and Tetyana Pimonenko

Central European Business Review, 2025, vol. 2025, issue 3, 45-63

Abstract: The effectiveness of education policies and economic, social and environmental conditions play a crucial role in a country's ability to attract intellectual capital and influence emigration levels. Effective management of migration processes requires coordinating and synchronizing policies across various economic sectors to address the complexity of these dynamics. This study employs a two-step system of the generalized method of moments (GMM) to analyse the impacts of population literacy and ICT skills on migration patterns in EU countries in the period 2007-2022. The findings underscore the importance of enhancing ICT skills and improving education systems. Population literacy has a statistically significant nonlinear impact on the net migration rate. Initially, higher literacy may lead to more emigration and lower net migration. However, as literacy rates reach very high levels, the country becomes more attractive to immigrants, leading to greater net migration. A 1% increase in ICT skills can significantly boost a country's ability to attract skilled migrants by up to 5%. Policymakers need to ensure that increasing literacy rates are complemented by sufficient local opportunities to retain the educated population. Implications for Central European audience: This study highlights key strategies for Central European countries to manage migration and foster sustainable development. Investing in ICT skills and lifelong learning, increasing R&D to at least 1% and implementing balanced trade policies can attract and retain talent. Promoting sustainable economic growth improves living standards, reducing migration outflows. Tailored migration policies that address diverse migrant needs enhance integration and retention. Adopting data-driven approaches for continuous policy improvement ensures adaptability to emerging challenges. These combined efforts support a competitive workforce and long-term economic resilience, positioning Central Europe as a hub for innovation and sustainable growth.

Keywords: migrants; digitalization; human development; knowledge; education (search for similar items in EconPapers)
JEL-codes: F22 M31 M38 O15 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.18267/j.cebr.388

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