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You are at:Home»Uncategorized»Economic benefits of immigration
Uncategorized

Economic benefits of immigration

Grocott's MailBy Grocott's MailNovember 10, 2010No Comments2 Mins Read
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The recent xenophobic attacks that have occurred around the country have uncovered some of the negative perceptions that South Africans hold about foreign nationals. Surveys have shown that the problems associated with immigration are experienced world wide.

The recent xenophobic attacks that have occurred around the country have uncovered some of the negative perceptions that South Africans hold about foreign nationals. Surveys have shown that the problems associated with immigration are experienced world wide.

Citizens of host countries often feel that their jobs are threatened by immigrants. In some countries locals also believe that immigrants are untrustworthy and that many are involved in criminal activities.

However, according to recent studies there are certain economic benefits that can be obtained from immigrants. According to an economist at the American Economic Association, immigrants who have a preference for products from their native country import products from home and in some instances introduce these new products into their new country’s markets.

An example of this is the Chinese market places that have emerged all over Johannesburg. These markets have helped to expand South Africa’s informal sector, by supplying them with cheap clothing, toys and other products. Immigrants also export many goods to their home countries especially if they have left family behind.

Often money is sent back home for relatives. In this way they are exposing their countrymen to our local products which may further stimulate our export markets as citizens in the host country demand more of the foreign goods. Immigrants can also help companies wanting to trade with their home country as they have information about their home country's culture and economy that other countries may not have.

They may also have connections in their home countries that can help facilitate trade relations between the two countries. However, this advantage can only be achieved if the immigrants are educated and well connected. Tapping into the hidden potential of immigrants could mean that xenophobia would be greatly reduced.

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