Immigration Good or Bad for the Economy?

Nowadays, more than 300 million people live where it is not their birthplace. You can call it `Following their dreams` or  `desperately escaping` but the truth is everyday more people join the group which called `immigrants`.

But `What is the economical consequences of immigration?` In this article, I will try to answer this question.We have to divide immigration into two such as Legal and Illegal Immigration. Therefore, I'm going to analyze them separately.

 Legal Immigration

Legal Immigration mostly possible when the individuals have some specialization or profession. A lot of people migrate to another country for better conditions. What are the better conditions? Higher wage, better job prospects and eventually better life. In this situation, we have to talk about brain dread which is global problem. Mostly, brain drain is the main problem of developing countries. Brain dread can cause the country of origin's economy deeply.  As United Nations Development Program announce that India loses $2 billion every year because of the emigration of computer experts, we can understand the cost.

What is the economical consequences of Legal Immigration to the Host Country?

Satya Nadella; Indian CEO of Microsoft 

As you know, some countries have skill gaps (For example Canadian Government announce `wanted skills` list every year) and these countries can `import` talent and fill this gap. For me, this is the biggest advantage of immigration for host countries. The country's skilled will increase and this will lead to increase in research and development.

Most of the economists just say that `the host country gains skilled labor` but this is not the only case.When one person, one scientist or one worker (doesn't matter) immigrate to the another country; they bring their own ideas and dreams to the host country. Can you imagine how much the host country's economy can gain from it? Every legal immigrant means one more person in the Entrepreneur pool of the host country. Of course, not everyone will become entrepreneur but perhaps some of them will become. Therefore, we can call in some cases`legal immigration to`capital immigration.`

However, there is also another side of the immigration which is little bit bitter. Immigration means more population and more population means more public expenditure. Moreover, if the number of incoming people are more than the job prospects, Unemployment rate of the host country can increase.

Illegal Immigration

In the Legal Immigration case I explained 2 advantages and disadvantages which I think the most important ones. Now, we can analyze the `more` popular one; Illegal Immigration.  In USA, number of illegal immigrants increase yearly and approximately there are 15 million illegal immigrants in USA. Therefore, `not surprisingly` Illegal Immigration is very hot-button of American agenda.

What is the economical advantages and disadvantages of illegal immigration?

`They do things what Americans will not do` This is one of the main pro argument for Illegal Immigration. Logically, not all the people should go to university or higher-education because country's economy needs every kind of job. I would like to share with you one sentence which I liked a lot `If everyone become professor, who will clean the streets` So, in this case, immigrants help USA and do `must do jobs` which nobody wants so USA is happy. They gain good money compared to their host country so, they are happy. WIN-WIN for everyone.

Most of the illegal immigrants desperately needs money and they can not work `legally` in anywhere, which lead that they can accept lower wages than minimum wage and work longer hours. Therefore, the cost of the product will decrease. This will allow firms to spend this saving as investment or anything else. What is more, they live in the country and purchasing goods and services which can boost country's economy.

Remittance is the disadvantage of the host country but a huge advantage for the country of origin. Because, usually, illegal immigrants don't adapt to the host country's culture and they plan to go back to their home country after they save enough money. Therefore, they send their all savings to their home country which can increase the home country's economic situation. For example; When Germany accepted `guest-workers` from Turkey, maybe in short term Turkey lost labor force, skilled workers etc but in long term when Turkish workers in Germany started to gain money and send them back to the Turkey, cash inflow increase in Turkish economy which can lead more investment, more development. We have to understand the importance of remittance for the economies and estimated amount of global remittance from immigrants is $500 billion per year.

In Conclusion

Legal, educated, skilled immigration can boost the host country's economy or help to research and development yet brain drain can cause huge costs to the country of origin's economy. But about illegal immigrants, the situation has both benefits and harms. In any case, immigration can not stop where globalization can not. The borders become smaller whereas people's demand become bigger.