DYNAMIC EFFECTS OF MIGRANT REMITTANCES ON GROWTH: AN ECONOMETRIC MODEL WITH AN APPLICATION TO SOUTHEAST EUROPEAN COUNTRIES

This paper presents a dynamic econometric model to study the impact of remittances on consumption, investment, output and imports. Multiplier effects of exogenous shocks of remittances are estimated in the short and long term, with data from six Southeast European countries. The analysis reveals a uniform country performance of instability and uncertainty, with great temporal and inter-country fluctuations of remittance effects. Are highlighted the different inter-country priorities of remittances spending and an asymmetric impact on economic growth of remittances changes.