Open AccessThe Role and Impact of Remittances on the Economic Growth - Kosovo Case Study
Author(s) -
MSc. Jeton Zogjani,
Dr.Sc. Myrvete Badivuku-Pantina
Publication year - 2016
Publication title -
iliria, international review
Language(s) - English
Resource type - Journals
eISSN - 2365-8592
pISSN - 2192-7081
DOI - 10.21113/iir.v4i2.32
Subject(s) - economics , statistic , inflation (cosmology) , exchange rate , ordinary least squares , econometrics , variables , order (exchange) , statistical software , regression analysis , macroeconomics , statistics , mathematics , finance , physics , theoretical physics
In this research paper the role and impact of remittances on the economic growth of Kosovo in the recent years (2008 - 2013) through remittances, inflation rate, real effective exchange rate (REER) as independent variables and economic growth as depend variable is analyzed. The secondary data are used which are taken from international and domestic institutions which are analyzed through STATA software (an econometric and statistical program).The reason for writing is that in 2013 the total value of remittances in Kosovo was 620.8 million € and in 2011 Kosovo was among the top 10 countries with the highest level of remittances. The main arguments used in this research paper are: how do remittances affect in overall the economy? What is the impact of remittances on businesses? How do we use it for family consumption? In the research methodology are used secondary data and all of them are analyzed by STATA software which helps in calculation of OLS method of regression, descriptive statistic and correlation matrix.Also this paper research findings show us that if we refer to the result of variables that are included in the paper though OLS methods, the remittances (β1= - 0.017) and the exchange rate (β3= - 0.322) have negative impact and nonsignificant (T 2) effect on economic growth and the coefficient of determination (R²) is 84% then the coefficient of Durbin Watson Statistic (DW) is 2.11, it means there is no autocorrelation.