It is hard to imagine a world where the movement of capital and goods takes place without the movement of people. The international migration helps in the economic growth of the world, development of countries and stability across the globe.With the advent of globalization, economies and labour markets continue to integrate and certain restrictions in the movement of people are regarded as a major hindrance in the anticipated global welfare gains that have the potential to benefit the developing countries, developed countries, people and their families. It can not only help in eradication of poverty but also can raise the standard of living of people in the developing economies of the emerging nations.
General Agreement on Trade in Services (GATS) specifies in mode 4 that only a small percentage of annual cross border movements are expected to generate more global welfare gains than the gains from further liberalization of trade in goods. However, migration of people is far more complex than the movement of goods across international borders as there are many issues surrounding the process of migration. Management of international migration has to be effective in order to derive maximum benefit and mitigate the losses. The costs and benefits of international migration can be assessed separately for the recipient and the source countries and its impact on poverty eradication and rising inequality in the contemporary globalized world.
Recipient countries consider the adverse economic impact of immigration as a matter of urgency because the influx over the past decade has increased. Immigration is a sensitive topic for the recipient countries. As it poses the concerns that the growing immigration is somewhere reducing wage and employment opportunities for the native labour force. However, empirical studies have shown that the net fiscal impact of immigration is quite small. The characteristics of migrant including age, education and skills level, and the duration of staying altogether decide the economic impact on the recipient countries (Sahay, R. etal., 2015).