The Effect of Remittances in Republic of Moldova

Greta Popovici ()
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Greta Popovici: Danubius University, Romania

EuroEconomica, 2013, issue 2(32), 31-38

Abstract: Republic of Moldova, a country with 3.6 million inhabitants, 22% of which chose to cross the border in hope of a better living, experiences a wide phenomenon of emigration associated with a considerable influx of remittances, that in Republic of Moldova reached 23% of GDP. This source of income is used mostly for individual consumption and just 6% are invested productively. The remittances affect the GDP and have a positive effect in the short term. In the long term, the remittances have an ambiguous effect, being a subject of moral hazard with negative externalities for the national economy.

Keywords: Remittance; migration; emigrants; remitter; recipient; Republic of Moldova (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:dug:journl:y:2013:i:2:p:31-38

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