The impact of migrant labors on Russian economy: production function approach

Russia is world’s second largest destination country where over 10 million migrant workers have come to work for their livelihood. As Russia has enormous territory and shrinking indigenous population, it attracts striking number of migrants. Although majority percent of immigrants come from former Soviet Union countries, the portion from other countries is not small. This paper discussed how migrant workers face enormous challenges in the Russian Federation and then explored the direct economic contribution of immigrants or labor migrants in Russian national income through their productivity performance. This empirical study has analyzed the impact of migrants on the growth of GDP using Cobb Douglas production approach through linear transformation from the logarithmic form and shows the positive consequences of labor migrants in Russian economy.