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The macroeconomic implications of emigrants' remittances in Romania, Bulgaria and Albania

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  • Anastasia Blouchoutzi
  • Christos Nikas

Abstract

The process of transition in the Balkan economies was accompanied by large-scale emigration. The employment of a considerable part of their labour force abroad was accompanied by a massive inflow of remittances. Remittances are considered the basic gain of migration for the emigration countries and their main compensation for losing (temporarily or more permanently) a part of their labour force. Whether remittances contribute to the economic development of the country receiving them depends on how they are used, that is, what activities they finance. Their exclusive use for consumption and imports, for example, is considered less development-stimulating than financing productive investment. This article investigates the impact of remittances on three basic macroeconomic variables, namely consumption, investment and imports, for three transition Balkan economies: Romania, Bulgaria and Albania. The main new element of the analysis is the use of econometric investigation on the basis of time series analysis, since emigration from these countries only started less than 20 years ago.

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  • Anastasia Blouchoutzi & Christos Nikas, 2010. "The macroeconomic implications of emigrants' remittances in Romania, Bulgaria and Albania," Post-Communist Economies, Taylor & Francis Journals, vol. 22(4), pages 547-558.
    • Handle: RePEc:taf:pocoec:v:22:y:2010:i:4:p:547-558
    DOI: 10.1080/14631377.2010.518479
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    Cited by:

    1. Adrian J. Bailey & Dušan Drbohlav & Dagmara Dzúrová, 2021. "Migrant Remitting as Transnational Practice: Moldovans in Italy and Czechia," SAGE Open, , vol. 11(2), pages 21582440211, May.
    2. Karmaker, Shamal Chandra & Barai, Munim Kumar & Sen, Kanchan Kumar & Saha, Bidyut Baran, 2023. "Effects of remittances on renewable energy consumption: Evidence from instrumental variable estimation with panel data," Utilities Policy, Elsevier, vol. 83(C).
    3. Ines Kersan-Škabiæ & Lela Tijaniæ, 2022. "The impact of remittances on economic development in the Central and Eastern European Countries," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 40(2), pages 281-296.
    4. Nikolay NENOVSKY & Kiril TOCHKOV & Camélia TURCU, 2011. "Monetary Regimes and EU Accession: Comparing Bulgaria and Romania," LEO Working Papers / DR LEO 1251, Orleans Economics Laboratory / Laboratoire d'Economie d'Orleans (LEO), University of Orleans.
    5. Rahman, Md. Matiar & Hosan, Shahadat & Karmaker, Shamal Chandra & Chapman, Andrew J. & Saha, Bidyut Baran, 2021. "The effect of remittance on energy consumption: Panel cointegration and dynamic causality analysis for South Asian countries," Energy, Elsevier, vol. 220(C).
    6. Christos Nikas & Student Anastasia Blouchoutzi, 2014. "Emigrants’ Remittances and the “Dutch Disease” in Small Transition Economies: the Case Of Albania and Moldova," Romanian Statistical Review, Romanian Statistical Review, vol. 62(1), pages 45-65, March.
    7. 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.
    8. Elliott Parker, Martin Piotrowski, 2023. "Remittance patterns in Eastern Europe and the World," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 20(1), pages 71-96, June.
    9. Laure Latruffe & Yann Desjeux, 2014. "Perpetuation of subsistence farming in Kosovo: the role of farm integration in input markets," Post-Communist Economies, Taylor & Francis Journals, vol. 26(1), pages 137-148, March.

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