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№3 (37) 2019

Demography and social economy, 2019, 3(37):11-29
doi: https://doi.org/10.15407/dse2019.03.011
UDC 331.556.4: 336.743(477)

Е.M. Libanova
Academician of NAS of Ukraine, Dr. Sc. (Economics), Prof., director
Ptoukha Institute for Demography and Social Studies
of the National Academy of Sciences of Ukraine
01032, Ukraine, Kyiv, Taras Shevchenko Blvd, 60
E-mail: libanova@ukr.net
ORCID 0000-0001-7170-7159

О.S. Ftomova
Ptoukha Institute for Demography and Social Studies
of the National Academy of Sciences of Ukraine
01032, Ukraine, Kyiv, Taras Shevchenko Blvd, 60
E-mail: oftomova@hotmail.com
ORCID 0000-0001-8550-3544

Language: Ukrainian
Abstract: The purpose of the article is to analyze the current international dynamics of remittances by evaluating their volume and consequences. Today, migration, and in particular labor migration, is becoming increasingly important for both sender and recipient countries. It has a direct impact on the labor market and on macroeconomic development in general. Due to the increasing number of migrants from less developed countries (primarily as a result of lack of employment opportunities and low income) and the preservation, at least during the first years after migration, of close ties with their families in their countries of origin, remittances contribute (1) to increased income and poverty reduction of the recipients’ households, and (2) to reduced territorial inequality in the sender countries. The article further examines the primary migration corridors and volume of remittances and notes the importance of (1) the geographical proximity of the sender and recipient countries, and (2) the legislative openness regarding international labor migration in the countries of destination. The article also evaluates the degree and macroeconomic impact of remittances, including their impact on poverty. The positive impact includes the overall reduction of level and depth of poverty and inequality through direct assistance to the households who need it the most, and the increased consumption and investment in the sender countries as a whole. The risks are increased poverty due to accelerated price increases, rise in inequalitydue to growing differences in the level of life among households who receive income from abroad and those who do not, and the growing dependence of recipients on remittances as an income source. The article concludes that migration and remittances are extremely complex phenomena that have ambiguous consequences. For Ukraine, the receipt of significant funds from abroad is an important reserve for improving the general welfare. However, to achieve the maximum benefit, a sound policy is needed that is based on (1) assessing comprehensively the benefits and risks to economic development, (2) facilitating the establishment, and maintenance, of Ukraine’s efficient links with the diaspora, (3) and overcoming, among Ukrainian society, of the “propensity to migrate”.
Key words: migration, labor migration, migration corridors, remittances, macro- and microeconomic impact of remittances, poverty, inequality.
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