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Remittances matter: longitudinal evidence from Albania


  • Laetitia Duval
  • Francois-Charles Wolff


Using the LSMS panel data collected by the World Bank in Albania from 2002 to 2004, this article focuses on the determinants and financial implications of remittances sent by family members and adult children living abroad. Our econometric analysis draws on random and fixed effects discrete choice models. We find that the proportion of households receiving remittances is large. These transfers are negatively correlated with both the donor's and the recipient's level of education. Finally, remittances have a positive impact on economic indicators like satisfaction with current situation, adequateness of food consumption and number of affordable expenditures.

Suggested Citation

  • Laetitia Duval & Francois-Charles Wolff, 2010. "Remittances matter: longitudinal evidence from Albania," Post-Communist Economies, Taylor & Francis Journals, vol. 22(1), pages 73-97.
  • Handle: RePEc:taf:pocoec:v:22:y:2010:i:1:p:73-97 DOI: 10.1080/14631370903525611

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    References listed on IDEAS

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    Cited by:

    1. Docquier, Frédéric & Rapoport, Hillel & Salomone, Sara, 2012. "Remittances, migrants' education and immigration policy: Theory and evidence from bilateral data," Regional Science and Urban Economics, Elsevier, vol. 42(5), pages 817-828.
    2. Giulia Bettin & Riccardo Lucchetti & Claudia Pigini, 2016. "State dependence and unobserved heterogeneity in a double hurdle model for remittances: evidence from immigrants to Germany," Mo.Fi.R. Working Papers 127, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
    3. Giulia Bettin & Riccardo Lucchetti, 2016. "Steady streams and sudden bursts: persistence patterns in remittance decisions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 29(1), pages 263-292, January.
    4. Bredtmann, Julia & Martínez Flores, Fernanda & Otten, Sebastian, 2016. "Remittances and the Brain Drain: Evidence from Microdata for Sub-Saharan Africa," IZA Discussion Papers 10367, Institute for the Study of Labor (IZA).
    5. Maëlan Le Goff & Sara Salomone, 2015. "Changes in Migration Patterns and Remittances: Do Females and Skilled Migrants Remit More?," Working Papers 2015-15, CEPII research center.
    6. Laetitia Duval & François-Charles Wolff, 2013. "The consumption-enhancing effect of remittances: Evidence from Kosovo," wiiw Balkan Observatory Working Papers 107, The Vienna Institute for International Economic Studies, wiiw.
    7. Kalaj, Ermira Hoxha, 2010. "Remittances and Human Capital Investment: Evidence from Albania," MPRA Paper 49210, University Library of Munich, Germany.
    8. Dritan Shoraj & Leontiev Çuçi, 2013. "Effectiveness Of Remittances In Improving The Well-Being Of Albanian Families," Romanian Economic Business Review, Romanian-American University, vol. 8(3), pages 98-110, September.
    9. Meyer, Wiebke, 2012. "Motives for remitting from Germany to Kosovo," Studies on the Agricultural and Food Sector in Transition Economies, Leibniz Institute of Agricultural Development in Transition Economies (IAMO), volume 69, number 69.
    10. Meyer, Wiebke & Mollers, Judith & Buchenrieder, Gertrud, 2012. "A behavioural approach to remittances analysis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126428, International Association of Agricultural Economists.
    11. Duval, Laetitia & Wolff, François-Charles, 2015. "Ethnicity and remittances: Evidence from Kosovo," Journal of Comparative Economics, Elsevier, vol. 43(2), pages 334-349.

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