International aid and migration as a specialization type of small countries

Abstract

The article analyzes the effects of economy size on international aid receipts and migration. Small developing countries are more dependenton foreign aid and migration than other developing countries. Therefore a particular group of small countries is called MIRAB (Migration, Remittances, Aid and Bureaucracy). While small countries benefit from bigger international aid receipts per capita, relative to GNI or gross capital formation, aid relative to import is not much bigger than in large countries. The reasons of preferential treatment for small countries is their vulnerability to foreign economic and natural disaster shocks, distribution of votes in international organizations, better transparency of international aid use, lower costs of the image of a donor, trade opennessand trade deficits, and reluctance to help very large countries. Small states have larger emigration and immigration ratios, but especially suffer from brain drain and low probability of repatriation. The reasons include deep specialization of production, lower demand for skilled labor in exporters of raw materials, vulnerability to external shocks, impossibility of domestic migration. On the other hand small countries can face larger immigration quotas and benefit from transfers from emigrants. The MIRAB phenomenon also can be incident to some larger states. Originally the middle sized economy ofUkrainewas less dependent on international aid, but under the recent economic crisisits ratio to GNI and gross capital formation increased substantially. There is some similarity ofUkrainewith small countries by indicators of migration. But larger economy and territory provide better opportunities for domestic migration. Trends in personal remittances are also better than in small countries.

Authors and Affiliations

O. Chugaiev

Keywords

Related Articles

Досвід переходу сільського господарства Бразилії на засади сталого розвитку

The aim of the article is the assessment of Brazil’s agriculture current state and Brazil’s experience in the agricultureconversion on the basis of sustainability. To achieve this aim in this article were used such metho...

Механизмы государственного регулирования внешнеэкономической безопасности Украины

The priority task of the public administration system of each country is to ensure foreign security. Its relevance is intensifying in the face of growing external threats, in particular, changes in the political course a...

Університети в глобальній економіці: режим конкуренції за знання

Development of higher education accompanied with evolution of most developed countries towards knowledge economy in processes of globalization and internationalization of education challenge countries to adapt to new con...

Особливості аналізу сучасних обмежень світової торгівлі

The latest global economical crisis has finished the second globalization era on the ground of crisis in the WTO and its inability to complete the Doha negotiations. All of these together, generated the issue about the p...

Фундаментальные факторы функционирования и развития национальных инновационных систем в странах ЕС и в Грузии

Fundamental factors of innovation economy formation and functioning are formulated in the article. The necessity of conducting a purposeful state policy for strict antimonopoly regulation is substantiated, as well as sig...

Download PDF file
  • EP ID EP290902
  • DOI -
  • Views 104
  • Downloads 0

How To Cite

O. Chugaiev (2016). International aid and migration as a specialization type of small countries. Вісник Дніпропетровського університету.Світове господарство і міжнародні економічні відносини, 24(8), 104-111. https://europub.co.uk/articles/-A-290902