Yusuf Aslan
Migration Economy:
The history of humanity is also a history of migration. Migration has been one of the most powerful dynamics shaping social, political, economic, and cultural structures. Although, under the influence of the modern nation-state concept, many of us believe that we have belonged to the same lands for thousands of years, the reality is quite different. The rise and fall of empires, intercontinental population movements, the Industrial Revolution, world wars, major natural disasters, and pandemics have all triggered large waves of migration throughout history. This mobility has played a decisive role in shaping the world as we know it today.
Migration is often perceived as a “problem” because it is typically associated with negative factors such as war, conflict, economic crises, and natural disasters. However, when the effects of migration are examined in the long term, this perception proves to be misleading in many ways. Migration is a transformative process not only for individuals but also for both the sending and receiving countries. One of the most evident areas where this transformation can be observed is the economy.
Regardless of whether it is voluntary or forced, regular or irregular, migration has profound effects on the economic structures of both source and destination countries. One of the most striking examples of the economic contributions of voluntary migration is the story of Turkish workers who migrated to Germany in the 1960s. After World War II, Germany, seeking to rebuild its industrial sector, recruited workers from Turkey to address its labor shortages. These workers played a crucial role in the country’s economic development. According to the German Federal Statistical Office, foreign workers constituted 10% of the German workforce in the 1970s, and today, this rate exceeds 17%. This underscores the ongoing importance of foreign labor in the German economy and the significant contribution it makes to Germany’s Gross Domestic Product (GDP).
A similar situation is evident in the United States. Over the past 50 years, the driving force behind technological transformation in the U.S. has been skilled migrants attracted by the promise of better education, income, and living standards. According to the National Science Foundation, over 40% of U.S. technology companies have been founded by immigrants, generating an annual economic value exceeding $1 trillion.
Although forced migration is often perceived as an economic burden, research suggests that this perception does not fully reflect reality. The mass influx of Syrian refugees provides a relevant example. According to the World Bank’s 2019 data, a 1% increase in the migrant population in high-income countries leads to a 2% increase in per capita income. Similarly, a study conducted in Turkey found that a 1% rise in the migrant population contributed to a 0.01% increase in economic growth. Despite challenging economic conditions, it is evident that migrants contribute to economic revitalization. Studies conducted by international organizations such as the IMF, OECD, and UN confirm that migrants create significant economic value for both their host and home countries.
Migrants have a considerable economic impact on their home countries. According to the World Bank’s 2023 data, remittances sent by migrants to their countries of origin have exceeded $600 billion globally. While this inflow has a limited impact on upper-middle-income countries like Turkey, it constitutes a crucial economic contribution for many Central Asian and African nations, where it accounts for up to 20% of GDP. This financial support plays a vital role in sustaining economic and social life in these countries. Additionally, remittances help prevent larger-scale forced migration from these regions by providing a degree of economic stability.
Regardless of their legal status, migrants contribute to economic growth by filling labor shortages in key sectors. They are often employed informally in labor-intensive industries such as agriculture, construction, textiles, and livestock. Although public debates frequently focus on government aid and social benefits, migrants rapidly integrate into the economy and contribute to production. For instance, the consumption expenditures of the Syrian population in Turkey have revitalized local economies in the cities where they reside. Economic indicators in cities such as Gaziantep, Şanlıurfa, pre-earthquake Hatay, Mersin, and Adana reflect this economic dynamism. Furthermore, according to the International Labour Organization’s (ILO) 2020 report, approximately one million Syrians in Turkey filled labor gaps in sectors that the local workforce preferred to avoid.
A similar situation can be observed in Spain, where irregular migrants play a crucial role in the agricultural sector. According to the OECD’s 2021 report, these migrants are an essential part of Spain’s €15 billion food production industry. These examples illustrate that even under low-wage and informal working conditions, migrants make a positive contribution to economic growth.
In addition, the contributions of Syrian entrepreneurs to the Turkish economy should not be overlooked. A 2022 study found that 20,000 Syrian-owned businesses operating in Turkey provided employment for 500,000 people and boosted Turkey’s exports to Arab markets. However, public discourse often focuses on European Union-funded assistance programs, causing this significant economic contribution to go unnoticed.
For countries facing aging populations and shrinking workforces, migration is one of the most crucial drivers of sustainable growth. In 2023, Canada admitted over 465,000 new immigrants, ensuring labor force stability and the sustainability of its pension system. Projections in Germany indicate that the country will need over 7 million migrant workers by 2040 to sustain its economic productivity. Although migration is a topic of political debate, it remains a fundamental element of economic stability and sustainable development.
All this data clearly demonstrates that migration is not a burden but rather an opportunity. Voluntary migrants contribute through innovation and labor, while forced migrants drive consumption and production. A 2019 study in the U.S. found that while migrants received $405 billion in public services, they paid $492 billion in taxes, highlighting their net positive contribution to the economy.
However, fully harnessing the opportunities presented by migration depends on effective policies. Approaches focused solely on security concerns and anti-immigrant sentiments can hinder the realization of migration’s vast potential. When managed with the right strategies, migration becomes a key factor in accelerating economic growth. Investments in education, employment, and social integration policies can maximize the economic benefits of migration. Countries that view migration not as a threat but as an opportunity to be managed wisely will gain a competitive advantage in the global economy, while those that ignore this reality will continue to miss out on a major economic opportunity