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Eco-political Stability and Refugee Crisis: Some Queries

Presence of refugees in our world is very common and historically admitted also. Refugees are heterogeneous as a group, many asylum seekers are relatively young, the vast majority is of working age, and increasingly more people come from countries considered crisis accumulated or unsafe. Refugee crisis is recently hindering the developmental paths of several emerging economies across the globe and therefore generates curiosity among both economists and political scientists. Under such a backdrop, findings of any substantive plausible economic reasons behind such hitherto commonly ascribed issue become crucial from the angle of policy making. Broadly speaking, here we want to examine the major cause of refugee formation and how it will affect the size of the so-called potential refugees owing to eco-political instability. To perform this, here we have used a hybrid model which entails the flavours of both dynamic game theory and rational expectations theory of macroeconomics. From such a setup and under the presence of rational expectations, we have shown that a movement from a regime of REPE to non-REPE may lead to an increase in the level of nuisance or uncertainty in the South, which in turn raises the cost of life associated with high-quality quality-differentiated product of the South and thereby increases the number of potential refugees.