The impact of remittances on the receiving country: some evidence from Romania in European context

Laura Cismaș, Ruxandra Ioana Curea-Pitorac and Ioana Vădăsan

Economic Research-Ekonomska Istraživanja, 2020, vol. 33, issue 1, 1073-1094

Abstract: The objective of this paper is to study the impact of remittances upon the origin country of emigrants. In order to achieve our purpose, we have performed a quantitative analysis by using econometric models to highlight the correlation and the causality between the studied variables. The empirical research focused on two directions: first, we studied if the remittances cycle is more stable over the business cycle than private capital flows and secondly, we analysed the influence of the inflow of remittances on the economic activity in CEE countries, with emphasis on Romania. Our results are in accordance with the recent studies in the field and conclude that the inflow of remittances is more stable over the business cycle but does not stimulate economic growth in Romania.

Date: 2020
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DOI: 10.1080/1331677X.2019.1629328

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