Human Capital and Migration Costs for Romanian Economic Development

Economic Policies for Sustainable Development Conference Paper

15 Pages Posted: 3 Mar 2008

See all articles by Cristian Popescu

Cristian Popescu

Alexandru Ioan Cuza University - Faculty of Economics and Business Administration

Laura Diaconu

Alexandru Ioan Cuza University - Faculty of Economics and Business Administration

Andrei Maxim

Alexandru Ioan Cuza University of Iasi - Faculty of Economics and Business Administration (FEAA)

Abstract

The migration of labor force is one of the most important vectors of the globalization process. This phenomenon is deeply analyzed in the economic theory, usually being debated form different points of view. As main directions, there are, on one hand, the classical studies that reveal the advantages of the receiving countries and the disadvantages of the home countries, and on the other hand, some recent studies that note the benefic effects for all those involved into the process of free movement of labor force. Placing Romania in the context of the European and global economy depends on the human capital stock that the country will succeed to create and maintain. The great mobility of the people makes a country's human capital stock volatile, correlated to the economic stability and to the welfare state. Yet, the volatility still rests lower than in the case of the financial capital. This is why we may assume that the investments in human capital are more stable and with a higher return than attracting foreign capitals. The human capital is a huge magnet for the foreign firms which decide to relocate their production according to the abundance of the high skilled labor force from a certain region. Consequently, it is not necessary to look for the foreign financial capital in order to bring it inside the economy because it will come by itself when there are favorable conditions for high profit. The high productivities, the low costs and the abundance of the specialists are favorable arguments for profit.

Keywords: migration, public costs, economic growth, human capital accumulation

JEL Classification: O15, F22, R23

Suggested Citation

Popescu, Cristian C. and Diaconu, Laura C. and Maxim, Andrei, Human Capital and Migration Costs for Romanian Economic Development. Economic Policies for Sustainable Development Conference Paper, Available at SSRN: https://ssrn.com/abstract=1099362

Cristian C. Popescu (Contact Author)

Alexandru Ioan Cuza University - Faculty of Economics and Business Administration ( email )

Bd. Carol I no.22
Iasi, RO-700505
Romania

HOME PAGE: http://www.feaa.uaic.ro/catedre/in3.asp?codcat=EC

Laura C. Diaconu

Alexandru Ioan Cuza University - Faculty of Economics and Business Administration ( email )

Bd. Carol I no.22
Iasi, RO-700505
Romania

Andrei Maxim

Alexandru Ioan Cuza University of Iasi - Faculty of Economics and Business Administration (FEAA) ( email )

Bd. Carol I no.22
Iasi, RO-700505
Romania

HOME PAGE: http://www.feaa.uaic.ro/faculty/andrei-maxim/

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