Most of the immigrant labour are persons of specialized knowledge like doctors, engineers , research scholars and lately from the field of IT. These individuals are educated and well trained, in whom the sending nations have invested but their out-migration, which is labeled ‘brain drain’ , benefits the host nations.
The countries of origin experience some gains as the remittances of emigrant labour adds to their gross national product and adding to their foreign exchange reserves.
Remittances send back to families in the sending nation raises the standard of living and improves the lifestyle. It increases the choice of goods that can be purchased but also leads to consumerism.
Continuous inflow of large amounts of remittances creates a sense of dependency in the sending nation. It reduces reliability on domestic resources or goods and makes the country less than self sufficient. In the event of severed ties between the host and sending nation, a fall in trade and migration could affect the economy of the sending nation adversely.
Emigrants abroad tend to form organisations and associations which rush aid to their native lands during calamities and disasters. They may also fund projects and thus increase the pace of investment for growth.