Remittances contribution

to sustainable economic
development ?

Data on remittances
No data on the real volume of the money transfers made by
Moldovan emigrants to the country.
All data rely on measures produced by local and international
institutions, think tanks. The main sources in this context are:
the data from Balance of Payments elaborated by National
Bank of Moldova is considered the most relevant source;
the Household Budget Survey carried out by the National
Bureau of Statistics that presents data on remittances share on
resident households income.
Besides these statistical data, there exists many surveys
elaborated by other institutions.

Trend of remittances inflow to the Republic of Moldova

THE REMITTANCES IN MOLDOVA BY

MAIN SOURCES OF ORIGIN

CORRELATION BETWEEN IMPORTS AND

REMITTANCES IN THE REPUBLIC OF MOLDOVA

RELATIONSHIP BETWEEN ECONOMIC

GROWTH, INVESTMENTS AND
REMITTANCES
Moderate influence of remittances to economic
growth - partially explained by the fact that
remittances are oriented to consumption and imports.
Still a part of remittances is channeled to
investments, although the influence is relatively
small.

THE IMPACT OF REMITTANCES ON

INFLATION AND EXCHANGE RATE

THE IMPACT OF REMITTANCES ON

INFLATION

REMITTANCES AND UNEMPLOYMENT

Influence of remittances is limited in case of unemployment
rate and is more consistent in case of part-time employment.
Increasing by 1% of remittances implies an increase by 0.03
percentage points of unemployment rate.
Increase of remittances by 1% determines a rise of part-time
workers to employed population ratio by 0.17 percentage
points.
The indirect impact of remittances on unemployment through
aggregate demand is more complex.

REMITTANCES AND SOCIAL

INDICATORS
The remittances impact on human capital
development in Republic of Moldova is at some
extent ambiguous.
Remittances have helped to reduce absolute poverty
in Moldova as perceived by the households
themselves. At the same time it remains difficult to
draw conclusions on the impact of migration and
remittances on income distribution.

CONCLUSIONS
In case of Moldova growth model based on
remittances does not yield in the long-run.
Economic growth proved to be not
sustainable in medium to long term, it is
necessary to identify and develop other
engines of economic growth.

RECOMENDATIONS
To ensure sustainable growth, Republic of Moldova is
obliged to perform reforms that improve business
climate.
Policies oriented to remittances and migration:
legalization of labor export and increasing its
efficiency.
socio-economic integration of migrants and their
remittances;
creating the appropriate conditions for remittances
transfers