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Remittances and Economic Growth

Author

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  • Mustafe Pllana

    (University of Prishtina, Prishtina, Kosovo)

  • Aida Tmava

    (University of Prishtina, Prishtina, Kosovo)

Abstract

Economic growth has become an important study growth matter. By economists economic growth is defined as capital stock growth, rising per capita GDP, increased access for manufactured goods and services for consumption and so on. In economic growth affect several factors and policies. Corruption, lack of investment, inappropriate institutions, inappropriate education etc. are some of obstacles to economic development. Consumption and investment are important components of aggregate demand with multiplicative effect in development. Remittances of migrants are significant potential financial capital used for investments, reflected in economic development and social prosperity. Remittances in Kosovo since 1960 have always been increasing. Participation of remittances to GDP in Kosovo in 2010 is about 12%. Remittances are the highest contributor to the Kosovo trade deficit coverage and are higher than foreign direct investments. Remittances unfortunately for various reasons are not exploited and are not sufficiently exploited for economic development.

Suggested Citation

  • Mustafe Pllana & Aida Tmava, 2016. "Remittances and Economic Growth," International Journal of Sustainable Economies Management (IJSEM), IGI Global, vol. 5(4), pages 47-64, October.
    • Handle: RePEc:igg:jsem00:v:5:y:2016:i:4:p:47-64
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    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJSEM.2016100105
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