Albanian migration – between brain drain and remittances CONFERENCE ON INTERNATIONAL MIGRATION T H 14 FEBRUARY 2014 ECONOMIC RESEARCH INSTITUTE AT BAS Ilir GEDESHI – Center for Economic and Social Studies (CESS) Albnian Migration Year of first migration experience, current migration and legalization in the destinations countries (in percent) 20,0 18,0 16,0 14,0 12,0 First migration experience 10,0 Current migration 8,0 Legalization 6,0 4,0 2,0 ,0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: CESS Migrant Questionnaire, 2009/2010 Fig. 1. First migratory experience and year of migration in current host country Albanian Migration/Push and pull factors Source: CESS Migrant Questionnaire, 2006 Fig. 2. Main reasons for migrating in the 90’ Albanian Migration Sector of employment in the country of migration during 2009 50.0 44.4 45.0 40.0 35.0 37.0 34.3 30.0 Greece 25.0 19.7 20.0 15.0 20.9 Italy 20.2 18.3 14.4 15.4 17.0 Others 14.4 10.0 5.0 12.8 12.0 6.8 7.4 0.9 1.2 2.9 0.0 Source: CESS Migrant Questionnaire, 2009/2010 Fig. 3. Employment sectors of Albanian migrants in host countries Albanian Brain Drain Source: CESS, 2008 Fig.4. Dynamics of Albanian brain drain: share of Academics moving abroad as % of total Academics (1990-2008) Albanian Brain Drain Albanian Brain drain by the countries of destination in 2008 35 29.2 30 Percent 25 17.8 20 15 12.4 9.4 9.9 10 5 8.9 7.2 2.9 2.2 0 Austria Canada France Greece Germany Italy Other countries UK USA Source: CESS, 2008 Fig. 5. Albanian brain drain by the country of destination in 2008 (in percent) Albanian Brain Drain Albain Brain Drain by Country of Destination and Year of Migration 50 45 40 35 UK 30 France Greece 25 Italy 20 Canada 15 Germany USA 10 5 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Source: CESS, 2008 Fig.6. Albanian Brain Drain by Country of Destination and Year of Migration (in %) Diaspora Option Albanian academics and researchers working abroad by country (%) Other countries Germany Italy Canada Austria Percent UK France USA 0 5 10 15 20 25 30 Source: CESS., Updating the database of overseas graduates, 2004 Fig. 7. Albanian academics and researchers working abroad by country Brain Gain Fig. 8. The conditions for the return of academics and researchers Remittances 1400 1200 1000 800 Remittances USD 600 400 200 0 Source: Bank of Albania, 2014 Fig. 9. Volume of remittances in USD and Euros Remittances EURO Remittances Remittances to Albania, as % of GDP, 1996 - 2011 18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Source: Bank of Albania, 2014 Fig.10. Remittances to Albania as percent of GDP Remittances Investments ALSMS, 2002 12% ETF Study, 2007 11,8% de Zwager et al., 2010 10% Table 3. Portion of remittances that is invested according to different studies Remittances Selected Data on Migrant Household (HH) Savings and Remittance Behaviour: Monthly HH Income: Monthly Expenditures: Monthly Saving Rate: Annual HH Remittance Value: Annual HH Savings Rate:* Savings in 2008: Remittances 2008: Savings/Remittances Factor: Albania € 2,300 € 1,477 € 855 Kosovo € 3,900 € 2,324 € 1,578 BiH** € 2,288 € 1,938 € 350 € 1,664 € 10,260 € 3,473 Million € 672 Million 5.2 € 3,212 € 15,724 € 2,340 Million € 479 Million 4.8 € 1,752 € 2,448 € 1,175 Million € 841 Million 1.4 * # Kosovar HH abroad: 149,000; # Albanian HH abroad: 404,000; Source: IASCI-NEXUS Field Research Dec-Jan 2008/9 ** The above BiH-specific figures are speculative as they are based on a conservative extrapolation of incomes, expenditures, savings and remittances behaviours of BiH migrant HHs in Austria. # BiH HH abroad: 480,000 based on 2.5 persons per HH of an estimated total number of 1.2 Mio BiH migrants abroad. Source: IASCI-NEXUS Study 2009 Conclusions