The impact of the migration on the economic development and international trade

Abstract

Labor is one of the production factors in the Economics and in the International Trade Theory. According to the theoreticians Labor was condisdered immobile in the international trade, and therefore labor-rich countries had a comparative advantage in manufacturing and trading the labor-intensive products. After the Versailles Treaty in 1919, ILO has been established and developed the Principles of Rights at Work in 1998, which was the first step to protection of labor rights [3]. In the Declaration of Fundamental middle of the 20th Century, industrialized countries with the Labor deficiency started inviting the workers from less developed countries. This approach opened the migration of the workers from less developed and developing countries to industrialized countries. Although the Migration stem from the economic, political, social and cultural reasons from the archaic centuries, today’s migration based on similar reasons creates positive impacts on the economic development and international trade. The immigrants earn higher wages with the new jobs at the host countries, even they develop further investment projects in the host countries and the original countries. With the help of Migration both countries’ people reach up to a higher level of welfare, and the Balance of Payment deficits of both countries are being improved. The impact of migration is not only economic, but also world peace and friendship among the peoples are being improved, too.