Free Migration of Factors of Production: EU Experience

DOI: 10.20542/0131-2227-2020-64-12-63-69
V. Tatuzov (,
Primakov National Research Institute of World Economy and International Relations, Russian Academy of Sciences (IMEMO), 23, Profsoyuznaya Str., Moscow, 117997, Russian Federation

Abstract. The article is devoted to the European Union’s single market of labor and capital. A critical approach is being set out with respect to the EU experience in this area (taking into account COVID 19) and the possibilities of its use today in the economy of the Russian Federation and the Eurasian Economic Union (EAEU). Certain Russian authors expected unstable and insufficiently favorable development of the economic and political situation abroad for many years, as well as the negative impact of this on the Russian economy in a number of works published by them 5–10 years ago. In particular, it is pointed out that the problems associated with free labor migration will aggravate in the face of deep economic risis and adverse economic conditions. It is expected that such conditions will prevail in the European and Eurasian area in the near future. The advantages and the disadvantages of free migration of labor and capital are reviewed. In EAEU the freedom of mobility of the factors of production increased, however now the question is raised about the impact of OVID 19 and economic crisis on the migration of factors of production (especially labor) as well as about the socio-economic reasons for the large-scale spread of coronavirus. The importance of studying these issues is emphasized. In today’s circumstances the massive imports of labor in Russia is risky. Some alternative approaches are considered. The article touches upon many hot topics of world development, including de-globalization, the growth of centrifugal forces in the EU, Brexit.

Keywords: European Union, Eurasian Economic Union, Russia, free migration of production factors, international migration of labor, Covid 19, foreign direct investment, global economic crisis


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For citation:
Tatuzov V. Free Migration of Factors of Production: EU Experience. World Eonomy and International Relations, 2020, vol. 64, no. 12, pp. 63-69.

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