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

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 d...

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Autores principales:	Elina BENEA-POPUȘOI, Polina ARIVONICI
Formato:	article
Lenguaje:	EN RO
Publicado:	Academy of Economic Studies of Moldova 2021
Materias:	remittances remittances dependent countries remittances’ side effects migration marginal propensity to invest investment resource trap ex-socialist countries Regional economics. Space in economics HT388
Acceso en línea:	https://doaj.org/article/9ac4ce32c12d417dabf7f9623998ab59
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spelling	oai:doaj.org-article:9ac4ce32c12d417dabf7f9623998ab592021-11-27T10:18:00ZRemittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries2537-6187https://doaj.org/article/9ac4ce32c12d417dabf7f9623998ab592021-06-01T00:00:00Zhttps://csei.ase.md/wp/files/issue17/WP_Issue17_26-33_BEN.pdfhttps://doaj.org/toc/2537-6187The 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.Elina BENEA-POPUȘOIPolina ARIVONICIAcademy of Economic Studies of Moldovaarticleremittancesremittances dependent countriesremittances’ side effectsmigrationmarginal propensity to investinvestmentresource trapex-socialist countriesRegional economics. Space in economicsHT388ENROCSIE Working Papers Series, Vol 17, Pp 26-33 (2021)
institution	DOAJ
collection	DOAJ
language	EN RO
topic	remittances remittances dependent countries remittances’ side effects migration marginal propensity to invest investment resource trap ex-socialist countries Regional economics. Space in economics HT388
spellingShingle	remittances remittances dependent countries remittances’ side effects migration marginal propensity to invest investment resource trap ex-socialist countries Regional economics. Space in economics HT388 Elina BENEA-POPUȘOI Polina ARIVONICI Remittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries
description	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.
format	article
author	Elina BENEA-POPUȘOI Polina ARIVONICI
author_facet	Elina BENEA-POPUȘOI Polina ARIVONICI
author_sort	Elina BENEA-POPUȘOI
title	Remittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries
title_short	Remittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries
title_full	Remittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries
title_fullStr	Remittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries
title_full_unstemmed	Remittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries
title_sort	remittances’ side effects on economy: comparative approach of the republic of moldova and other ex-socialist countries
publisher	Academy of Economic Studies of Moldova
publishDate	2021
url	https://doaj.org/article/9ac4ce32c12d417dabf7f9623998ab59
work_keys_str_mv	AT elinabeneapopusoi remittancessideeffectsoneconomycomparativeapproachoftherepublicofmoldovaandotherexsocialistcountries AT polinaarivonici remittancessideeffectsoneconomycomparativeapproachoftherepublicofmoldovaandotherexsocialistcountries
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Remittances’ side effects on economy: comparative approach of the Republic of Moldova and other ex-socialist countries

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