The Relationship between Workforce Migration and the Basic Macroeconomic Variables of the Countries from Central Eastern Europe with a Focus on Bulgaria
The Relationship between Workforce Migration and the Basic Macroeconomic Variables of the Countries from Central Eastern Europe with a Focus on Bulgaria

Summary/Abstract: In order to establish a relationship between the labor market and migration, we consider the following 11 countries: Bulgaria, Romania, Estonia, Latvia, Lithuania, Poland, the Czech Republic, Slovakia, Slovenia, Hungary, and Croatia. The explored period is 2000-2017. The following methodology is applied: namely VAR methodology. We prove that in Bulgaria, unlike other post-communist EU Member States, wage is the foremost factor governing the international migration of the labor force. The research reveals that foreign direct investments have a strong impact on labor productivity, wages, respectively on emigration and labor immigration. In our study we advocate a policy of accelerating income growth, combined by the introduction of a tax-deductible minimum.

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