The Economic Effect of Immigration With Respect to Developed and Underdeveloped Countries

Authors: Rahul Kumar and Anand Kumar Singh, Students, NALSAR University of Law, Hyderabad, India



Immigration in simple terms can be defined as an act of international movement of people into a country of which they are neither native nor possess citizenship in order to live and work there. But in recent time the term immigration has been in vogue mostly because of a mass influx of refugees in European Union Countries. Due to this the social and political impact caused by immigration has been recently in discussion and has mostly invited a hostile reaction from the natives. This has led to wide scale xenophobia. This is mostly because one of the major concerns of the natives is that the immigrants are eating away their jobs and are causing a reduction in their wages. Especially with the coming up of the right wing government all over the world, the sentiments against immigrants has furthermore strengthened. But one aspect which most of the times have been ignored is the positive effect caused by immigration on the economy of the host countries. This paper will widely discuss the effects caused by immigration on the welfare system and the labour markets of the host countries. There are many studies which have pointed out the positive effect caused by immigration on the economy, especially in case of developed countries. The average impact which is caused by immigration on the public finance is also negligible, sometimes negatives but mostly positive. But still, there are also many challenges which are caused by immigrants to the economy which the paper will also discuss. This paper will also discuss the various ways in which immigrants can help in stimulating economic growth in the host countries such as by paying taxes and thus contributing to the public budget.

Keywords: Immigration, Economic effect, Developed Countries, Underdeveloped Countries


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