Preliminary communication
https://doi.org/10.22598/iele.2023.10.1.6
REMITTANCES ARE THE MAIN INDICATORS OF ECONOMIC GROWTH IN THE WESTERN BALKANS
Sabri Klaiqi
orcid.org/0000-0002-5063-9633
; Pjetër Budi College, Pristina, Kosovo
Fitim Maçani
; Pjetër Budi College, Pristina, Kosovo
Luljeta Aliu Mulaj
orcid.org/0000-0003-4876-6235
; Pjetër Budi College, Pristina, Kosovo
Abstract
The economies of the Western Balkan countries (Kosovo, Albania, Macedonia, Montenegro, Serbia and Bosnia and Herzegovina) rely heavily on diaspora remittances. The purpose of this paper is to estimate that remittances constitute an important source of income, financing aggregate demand and household. In this paper, an empirical econometric model was developed to assess the impact of remittances on nominal and real nominal growth for PB countries for the period 2010 - 2021. The empirical methodology is applied based on SPSS cointegration analysis: As a linear regression analysis (enter method), multiple regression analysis, reliability analysis, Spearman correlation analysis, factorial analysis and Kruskall Wallis model. Based on the empirical results obtained from this paper, it was found that the impact of remittances is positive in the economic growth in the Western Balkan region during the research period, while from the analysis of statistical differences, statistically significant differences were found in five countries of this region. Direct foreign investments also have a positive impact on economic growth from controlling variables. It is recommended to form a trust fund so that remittances from the diaspora can be collected and invested in capital projects such as the opening of manufacturing plants, investments in securities, and international stock markets, i.e. the relationship with the diaspora should change from a relationship of solidarity to a relationship of the market economy, where immigrants will invest their funds.
Keywords
Western Balkan States; Remittances; Migration; Economic Development; GDP
Hrčak ID:
305533
URI
Publication date:
30.6.2023.
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