ECONOMIC EFFECTS OF MIGRATION TO NORTH MACEDONIA
ECONOMIC EFFECTS OF MIGRATION TO NORTH MACEDONIA

Summary/Abstract: This paper presents the economic effects of migration in North Macedonia. Remittances of immigrants for small countries with disabilities of economic competitiveness and with a significant balance of payments deficit such as North Macedonia are of particular importance. They enable foreign exchange reserves to remain at optimum levels, maintain a stable level of the national currency exchange rate and intensify economic development. The main objective is to highlight the importance of remittances in the economic development of North Macedonia and to suggest a more stimulating policy to encourage migrants to invest in their home country. Direct and indirect remittances account for about 20 % of GDP in the economy of North Macedonia Such a level of remittances in which over 80% are of Albanian ethnicity indicates the contribution of this ethnicity to the economy of North Macedonia. The paper presents the dynamics of remittances and GDP in the last decade Parabolic regression is used in econometric analyzes, defined on the basis of the frequency distribution diagram. The interdependence of remittances and economic development in North Macedonia is analyzed in the last decade 2008/18. At the same time, the interdependence of the same indicators for neighboring countries such as Albania and Kosovo are presented. The empirical analysis of the correlative relation between remittances and GDP, expressed through coefficients of coercion, alliance and correlation, indicates a genuine link between development rates and remittances of immigrants in North Macedonia and two other Albanian states. The coefficient of determination shows that remittances have impacted the economic development of North Macedonia, Albania and Kosovo in the last decade.

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