Conference paper
https://doi.org/10.2478/zireb-2023-0020
The Fiscal Consequences of Emigration: Evidence from Croatia
Ria Ivandić
; University of Oxford, Department of Politics and International Relations, Manor Rd, Oxford OX13UQ, United Kingdom
Abstract
This article examines how the large shock in emigration following Croatia’s accession to the European Union affected local public finances. To do so, a difference in differences research design has been used on a balanced panel dataset of municipality level observations over a ten-year period. The areas that experienced the largest emigration in the post 2014 period saw a large negative decrease in total tax revenue over the subsequent years, mainly driven by income tax revenue decrease. The results of this research warn that large emigration flows can lead to a cycle of economic degeneration as local areas lose fiscal revenue to spend on local services, in turn making them less likely to attract citizens.
Keywords
Croatia; Migration; Local Public Finance; Difference in Differences Design
Hrčak ID:
310426
URI
Publication date:
30.11.2023.
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