Migration Flows and Their Impact on Demography and the Economy of Central and Eastern European Countries

Abstract

This paper analyzes the impact of migration on the demography and economy of Central and Eastern Europe, focusing on countries such as Poland, Romania, Bulgaria, and Ukraine during the period 2000–2021. Using a fixed-effects panel data model, the study explores the dual nature of migration's consequences in the region. Demographically, sustained emigration of young graduates and skilled labor contributes to a significant brain drain, while low birth rates accelerate population aging, notably in Romania and Bulgaria. This demographic shift reduces the pool of young active workers and increases strain on labor markets. Additionally, rapid urbanization intensifies challenges related to infrastructure and housing in major cities. On the economic front, labor immigration particularly from Ukraine helps to alleviate workforce shortages and supports key sectors like construction and services, especially in Poland. Conversely, the emigration of highly skilled workers undermines vital sectors such as healthcare, education, and industry, ultimately limiting innovation and economic growth. The study concludes that migration exerts a complex influence, generating both opportunities and structural challenges for Central and Eastern European countries.