Emigration and remittances pattern analysis in lagging-behind regions of the Baltics: case studies for Narva, Daugavpils and Visaginas

Abstract

In this paper the author is studying the economic effect of emigration in three lagging-behind Baltic regions over the past decade. During this time span the influence of emigration on the economy is analyzed in terms of the size of migration flows, taxation system differences and the level of remittances in the Baltic countries, all of which affect local economies / communities. An analysis in made of three distinctive lagging-behind regions: Estonian Narva, Latvian Daugavpils and Lithuanian Visaginas. The overall impact of emigration on the economies of the Baltic countries is evaluated by a weighting of negative and positive factors. In order to measure the influence of emigration on the selected Baltic economies – two quantitative approaches were developed. Each of these scenarios contains different sets of parameters and these combinations describe the economic impact of migration. Underlying formulae of the undertaken approaches, with small modifications, may be used for the examination of similar issues in other regions and countries.