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The impact of remittances on consumption and investment in Romania

Author

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  • Cristian ÎNCALŢĂRĂU

    (Faculty of Economics and Business Administration, Centre for European Studies, „Alexandru Ioan Cuza” University of Iasi)

  • Liviu-George MAHA

    (Department of Economics and International Relations, Faculty of Economics and Business Administration, „Alexandru Ioan Cuza” University of Iasi)

Abstract

This article proposes an econometric analysis of the effects of remittances on the Romanian economy in terms of consumption and investment. Unlike the other sociological studies regarding the Romanian migration phenomenon, the present research targets the macroeconomic level, following the extent to which remittances have supported the evolution of consumption and investment. Contrary to our assumptions, the results showed that remittances had a more significant contribution to investment than to consumption. This may be due to the data we have used, which include only the amounts sent through formal channels which are indeed bigger and meant for investment purposes.

Suggested Citation

  • Cristian ÎNCALŢĂRĂU & Liviu-George MAHA, 2012. "The impact of remittances on consumption and investment in Romania," Eastern Journal of European Studies, Centre for European Studies, Alexandru Ioan Cuza University, vol. 3, pages 61-86, December.
    • Handle: RePEc:jes:journl:y:2012:v:3:p:61-86
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    File URL: http://ejes.uaic.ro/articles/EJES2012_0302_INC.pdf
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    References listed on IDEAS

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    3. Giuliano, Paola & Ruiz-Arranz, Marta, 2009. "Remittances, financial development, and growth," Journal of Development Economics, Elsevier, vol. 90(1), pages 144-152, September.
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    8. Hrushikesh Mallick, 2008. "Do remittances impact the economy? Some empirical evidences from a developing economy," Centre for Development Studies, Trivendrum Working Papers 407, Centre for Development Studies, Trivendrum, India.
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    Citations

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    Cited by:

    1. Viorica Chirila & Ciprian Chirila, 2017. "The Analysis of Romania’s External Migration and of the Causality between Remittances and Romania’s Economic Growth," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 19(46), pages 696-696, August.
    2. Gabriela Carmen Pascariu & Bogdan-Constantin Ibanescu, 2018. "Determinants and Implications of the Tourism Multiplier Effect in EU Economies. Towards a Core-Periphery Pattern?," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 20(S12), pages 982-982, November.
    3. Zizi Goschin, 2013. "The Remittances As A Potential Economic Growth Resource For Romania," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 2(15), pages 1-29.
    4. Zizi GOSCHIN & Bogdan ILEANU, 2013. "Remittances Sent To Eu New Member States: Do The Make A Difference For The Household Consumption?," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 2(2), pages 22-38, DECEMBER.

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