Economic Influence on Migration

Economic Influences on Migration

In multiple countries around the world, economies are in a constant rut. Reasons for these ruts may range from corrupt government officials to newly achieved independence of a nation. Whatever the reason, economic downswings cause hard times throughout the population. No one is exempt and all are affected in one way or another. Families and individuals are practically forced to find alternate sources of income in order to sustain their selves. Often times it is possible to find these resources nearby and the people are able to get by and live to see better times.

Once in a while it occurs when an individual, or family, is forced to take extreme measures. More often than not a representative of a particular group is chosen to venture abroad and seek out better sources of income. It is usually rare to see an entire family relocate due to the expensiveness of travel. A neighboring country is usually the target of this representative. The main determinant of deciding on where to go is the economic situation of the new country. The theory of this relocation strategy is that the individual can go to another country and earn more money than he or she would earn in the mother land. Living very humbly, the individual then sends the rest of the income back to the family left behind so that combined incomes can make ends meet.

This is just one of many reasons for immigration to occur. This paper deals with the effects that the economic systems in various countries have on migration. This paper will focus on many aspects of the topic. It will first examine how economic hardships experienced by a country will influence people to seek means of income in other countries with better economic situations. Another aspect covered in this paper will be how countries of thriving economic markets become attractive to immigrants of other countries. Consequently, the next facets of this paper will include how the emigration of citizens to other countries affect the economy of the mother land, and how the immigration of foreigners alter the economy of the newly entered country. One final topic covered in this paper will focus on internal migration. That is, migration within one's own country. Obviously the emphasis on this will be the economic reasons for internal migration.

Many countries experience economic hardships currently, and many thriving nations have at one point or another experienced those hardships. Whatever political or other organizational factors have impacted the economic growth of a nation, the stunting of that country's economy has taken place and people feel the need to take matters into their own hands to better their personal situations. Migration is often the solution to this problem. An example of this that hits close to home is the immigration of Mexican workers into the United States.

There are many "push-pull" factors that affect the decisions made by immigrants about whether or not to enter the country. Since this paper focuses on the economic reasons for migration, we will examine these factors. According to research done, the Gross National Income (GNI) of Mexico was 550 billion dollars in 2001. According to the same source, the GNI for the United States topped the charts at 9780 billion dollars (nationmaster.com). At more than 20 times the GNI of Mexico, the United States is viewed as a very desirable place to relocate for Mexicans seeking out a better way of life.

Gross National Income (2001)

1. United States

$9780 billion (2001)

2. Japan

$4520 billion (2001)

3. Germany

$1940 billion (2001)

4. United Kingdom

$1480 billion (2001)

5. France

$1380 billion (2001)

6. China

$1130 billion (2001)

7. Italy

$1120 billion (2001)

8. Canada

$682 billion (2001)

9. Spain

$588 billion (2001)

10. Mexico

$550 billion (2001)

Another source states that the GNI per capita measured by Purchasing Power Parity (PPP$) is less for Mexicans than Americans. The PPP$ accounts for exchange rates and how much someone is able to purchase compared to another. The PPP$ for Mexicans was estimated at 8770, while Americans PPP$ was estimated at around 34870 (globalis.gvu.unu.edu). This indicates that American money is worth about 4 times more to Mexicans than it is to Americans. This is a great "push" factor to get Mexicans to immigrate to the United States while at the same time it is a "pull" factor from the United States stand point.

Another example of this same situation is the immigration of Peruvians and Bolivians into Chile. While looking at the GNI for these countries, there is only a relatively small difference of 15 billion dollars between Peru and Chile, but a substantial mark of about 62 billion dollars between Chile and Bolivia (nationmaster.com). From the Peruvian point of view it may seem that the reasons for immigrating are pointless at best, seeing as how there is only a small difference in overall GNI. The reason has to do with the PPP$ between these two countries. Chilean money has twice the value of Peruvian money. According to the PPP$ information already looked at, Peru's PPP$ is at 4680, while Chile's PPP$ is at 9420 (globalis.gvu.unu.edu). For Bolivians, the benefits are two fold. The PPP$ for Bolivia is 2380 compared to the Chilean 9420. That's a value of 4 times that of Bolivian money. The other obvious reason is that there is 62 billion more dollars to be made in Chile than in Bolivia (nationmaster.com).

There are many effects that emigration has on a country. An overall view shows that it is mostly beneficial for a sending country. Short term effects are a little rocky because they could be both positive and negative. A sending country could benefit because emigration provides more job opportunities for the remaining citizens of that nation. Another way in which the country can prosper was mentioned in the introduction to this paper. It is the idea of emigrating

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