The Impact of Migration on Capital Markets

Authors: Thomas Poufinas, George Galanos

ABSTRACT
Migration is a topic that has always attracted the interest of researchers, policy makers, politicians and the simple people as well, primarily because of its social labor and economic dimensions. In this paper we attempt to identify what may be the impact of migration to the capital markets of the countries that receive the migrants. To do that we use an econometric approach, employing linear regression in order to investigate the relationship between the immigration flows, as measured by the number of immigrants and the capital market variables of interest. These are market capitalization (as a percent of GDP and USD billion), bank deposits (as a percent of GDP and USD billion), public debt (as a percent of GDP and USD billion) and net public debt (in USD billion). We use the Stata econometric software to run these linear regressions with Ordinary Least Squares (OLS). We find evidence that the number of immigrants could have a positive impact to the capital markets of the recipient country, as it is positively correlated with the market capitalization, the bank deposits and the public debt.

Source:

Journal： Theoretical Economics Letters

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