TITLE:
The Impact of Migration on Capital Markets
AUTHORS:
Thomas Poufinas, George Galanos
KEYWORDS:
Migration, Capital Market, Stock Market, Enterprises
JOURNAL NAME:
Theoretical Economics Letters,
Vol.8 No.11,
August
24,
2018
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.