EconPapers    
Economics at your fingertips  
 

Analysis of the Propagation Effects of Remittances on the Vulnerability of External Trade of the Republic of Moldova

Mircea Diavor

Eastern European Journal for Regional Studies (EEJRS), 2021, vol. 7, issue 2, 94-120

Abstract: In the Republic of Moldova remittances have become a much-discussed subject, the country ranking among the economies with the highest share of remittances in terms of GDP. What is more, remittances, unlike FDI, external trade and other sources of income, seem to have a significant impact on economic growth. Republic of Moldova is a small open economy vulnerable to external shocks. We will examine the effect of remittances on the balance of trade by creating an econometric model. Am attempt has also been made to capture the positive and negative spillovers that migrants’ remittances have on a country’s socio-economic development. Within the research a variety of analytical tools are employed including Granger causality tests, unit root tests, coupled with a structural vector auto regression (SVAR), impulse response function (IRF) analyses and variance decomposition. We find that net trade and remittances are closely associated and follow an almost identical path. Remittances have strong effect on the growth of negative net trade of the Republic of Moldova.

Keywords: net trade; remittances; Granger Causality Test; SVAR; variance decomposition; IRF analyses. (search for similar items in EconPapers)
JEL-codes: F10 F24 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://csei.ase.md/journal/files/issue_72/EEJRS_Issue_72_94-120_DIA.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:journl:v:7:y:2021:i:2:p:94-120

DOI: 10.53486/2537-6179.7-2.06

Access Statistics for this article

Eastern European Journal for Regional Studies (EEJRS) is currently edited by Olesea SIRBU

More articles in Eastern European Journal for Regional Studies (EEJRS) 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 ().

 
Page updated 2024-02-03
Handle: RePEc:aem:journl:v:7:y:2021:i:2:p:94-120