Migration is a key factor influencing the economic growth of developing countries. Economic growth in the long run is the potential output that can be produced, and in the short-run, the real output produced in a period of time. The key reason why emigration of skilled workers could be beneficial to developing countries is due to the remittance paid to homelands. Given that skilled workers are likely to earn more income abroad in global hubs such as the UK and USA this can benefit the while family living in e.g. Romania. This gives them a stable source of income from a well-paying job, which increases their marginal propensity to consume. As a result, there is an increase in aggregate demand , causing an increase in actual output and hence resulting in short-run economic growth. Indeed, workers from developing countries remitted a total of $325 billion in 2010. This can indirectly improve the economy’s balance of payments, as remittances are a key part of investment incomes, making ...