THE ROLE OF REMITTANCES IN MACEDONIA'S ECONOMIC DEVELOPMENT
THE ROLE OF REMITTANCES IN MACEDONIA'S ECONOMIC DEVELOPMENT

Summary/Abstract: The economy of Macedonia and other Albanian lands, as well as those of developing countries, in the globalization processes of remittances provide considerable financial resources. Although in the last few years there is a gradual shrinkage, they still provide Macedonia's economy with an additional accumulation that promotes economic development. Remittances increase GDP, reduce poverty, depreciate economic cycles, increase quality of life, withstand payment bill deficits, increase foreign exchange reserves, consumption, savings, etc. The remittances of the emigrants in the Macedonian economy by the National Bank account for about 4% of GDP, but they are actually much higher (around 20%). According to an author's own poll, Albanians send the money mostly through their friends, relatives, WESTERN UNION, etc. Macedonia's economy is not competitive in the international goods and market services, as for the consequence of a deep balance of payments deficit (about 20% of GDP). Remittances cover the deficit and enable foreign exchange reserves to remain stable. The work presents the inter-dependence of GDP from remittances to the Macedonian economy in the period 2000/2016. The analysis shows a strong correlation between them Although remittances in Macedonia's economy are a stimulating and stabilizing factor, government measures to stimulate investment in migrants remains desirable. The priority of the Macedonian government and especially the Albanian political entities should be the strategy for repression of displaced persons, eventually their return, investment incentive policies can encourage emigrants to save money to invest in their homeland.

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