Remittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries

Elina Benea-Popușoi and Polina Arivonici

CSIE Working Papers, 2021, issue 17, 26-33

Abstract: The purpose of our research has been to ascertain and elaborate on why some countries could not take advantage of migrants’ remittances or even are experiencing some adverse side effects due to them. Moreover, the paper aims to identify an adequate set of policy recommendations for the remittances dependent countries. In order to elucidate the multiple implications of remittances, apart from introduction, literature review, and conclusions, we have structured the research into 3 sub-chapters, examining the connection between remittances and some macroeconomic issues, investment climate in remittances recipient countries, and drawing some policy recommendations. To generate and analyse data we have relied on both qualitative and quantitative secondary data analyses. For quantitative data, we used statistical analysis of relevant indexes elaborated by the World Bank and the Heritage Foundation. While for the qualitative approach, we used thematic analysis of the bibliographic sources. A major finding of our research is that there is a thin line between remittances’ pros and cons, since in fact almost every short-run advantage can turn out into a long-run side effect, primarily as a result of mismanagement and conspicuous consumption of these financial inflows, due to unfavorable business climate and decreased marginal propensity to investment of the population. Therefore, the benefits and adverse side effects of remittances are interdependent.

Keywords: remittances; remittances dependent countries; remittances’ side effects; migration; marginal propensity to invest; investment; resource trap; ex-socialist countries (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://csei.ase.md/wp/files/issue17/WP_Issue17_26-33_BEN.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aem:wpaper:y:2021:i:17:p:26-33

Access Statistics for this article

CSIE Working Papers is currently edited by Olesea SIRBU

More articles in CSIE Working Papers from Center for Studies in European Integration (CSEI), Academy of Economic Studies of Moldova (ASEM) Contact information at EDIRC.
Bibliographic data for series maintained by Dr. Rodica CRUDU ().