The impact of remittances on economic growth and reduction of poverty in emerging market

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Abstract

The role of remittances is considered to be extremely important as an external source of financing for many countries, especially for those facing slow economic development and high unemployment rates. Therefore, the aim of this study is to analyze the impact of remittances on economic growth and poverty reduction in the developing market, with a specific focus on Kosovo as the case study. To examine the hypotheses, this paper utilizes a comparative analysis method for the period from 2008 to 2022. The study’s results indicate that remittances have had a significant and important influence on economic growth. Furthermore, the findings demonstrate that remittances have contributed to the improvement of well-being and living standards for the people of Kosovo. At the same time, remittances have been a strong foundation for the recipient economies, significantly reducing the risk of poverty. Additionally, the study results show that remittances have positively influenced the maintenance of economic equilibrium between rural and urban, as well as regional areas. The fundamental objective of this research is to study and contribute further to this field, which has not been sufficiently covered for developing economies like Kosovo.

Keywords: Kosovo, Migration, Remittances, Economic Growth, Poverty

Authors’ individual contribution: Conceptualization — G.L., A.H., and K.A.; Methodology — G.L., A.H., and K.A.; Formal Analysis — G.L., A.H., and K.A.; Investigation — G.L., A.H., and K.A.; Writing — Original Draft — G.L., A.H., and K.A.; Writing — Review & Editing — G.L., A.H., and K.A.

Declaration of conflicting interests: The Authors declare that there is no conflict of interest.

JEL Classification: F22, F24

Received: 10.04.2023
Accepted: 07.12.2023
Published online: 11.12.2023

How to cite this paper: Lubeniqi, G., Haziri, A., & Avdimetaj, K. (2023). The impact of remittances on economic growth and reduction of poverty in emerging market [Special issue]. Journal of Governance & Regulation, 12(4), 344–350. https://doi.org/10.22495/jgrv12i4siart14