The implications of emigration on the mining sector and overall economy of Romania

Mihaela Simionescu

The implications of emigration on the mining sector and overall economy of Romania

Číslo: 1/2022
Periodikum: Acta Montanistica Slovaca
DOI: 10.46544/AMS.v27i1.13

Klíčová slova: emigration, remittances, labour market, real GDP, mining sector

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Anotace: In the context of Romania's demographic decline and large-scale

migration to wealthier states, the evaluation of the effects of
emigration on the economy is necessary in order to implement
suitable policies for this country. A panel data and Bayesian approach
are used to assess the impact of emigration on the average number of
employees in the mining sector, real wage, unemployment rate, and
real GDP, but also the impact of remittances on the Romanian
economy. The increase in the number of emigrants and remittances
reduces the average number of employees in the mining sector. The
loss of skilled labour force has a negative effect on output. The
tensions in the labour market are to some extent reduced because of
lower unemployment, but the real wages are still low. The negative
consequences of emigration on the economy are somehow
compensated by the benefits of remittances that stimulate output
through private consumption in the period 1994-2019, but healthy
economic growth is not ensured in this way. Future migration policies
should focus on the emigration limitation and the use of remittances
for investment.