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Analysis of the Propagation Effects of Remittances on the Vulnerability of External Trade of the Republic of Moldova

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dc.contributor.author Diavor, Mircea
dc.date.accessioned 2022-01-24T11:13:10Z
dc.date.available 2022-01-24T11:13:10Z
dc.date.issued 2021-12
dc.identifier.issn 2537-6179; 1857-436X
dc.identifier.uri https://irek.ase.md:443/xmlui/handle/123456789/1867
dc.description DIAVOR, Mircea. Analysis of the Propagation Effects of Remittances on the Vulnerability of External Trade of the Republic of Moldova. In: Eastern European Journal of Regional Studies. December 2021, vol. 7, issue 2, pp. 94-120. ISSN 2537-6179, E-ISSN 1857-436X. en_US
dc.description.abstract In the Republic of Moldova remittances have become a much-discussed subject, the country ranking among the economies with the highest share of remittances in terms of GDP. What is more, remittances, unlike FDI, external trade and other sources of income, seem to have a significant impact on economic growth. Republic of Moldova is a small open economy vulnerable to external shocks. We will examine the effect of remittances on the balance of trade by creating an econometric model. Am attempt has also been made to capture the positive and negative spillovers that migrants’ remittances have on a country’s socio-economic development. Within the research a variety of analytical tools are employed including Granger causality tests, unit root tests, coupled with a structural vector auto regression (SVAR), impulse response function (IRF) analyses and variance decomposition. We find that net trade and remittances are closely associated and follow an almost identical path. Remittances have strong effect on the growth of negative net trade of the Republic of Moldova. JEL Code: F10, F24. DOI: https://doi.org/10.53486/2537-6179.7-2.06 en_US
dc.language.iso en en_US
dc.publisher ASEM en_US
dc.relation.ispartofseries Eastern European Journal of Regional Studies;vol. 7, issue 2
dc.subject net trade en_US
dc.subject remittances en_US
dc.subject Granger Causality Test en_US
dc.subject SVAR en_US
dc.subject variance decomposition en_US
dc.subject IRF analyses en_US
dc.title Analysis of the Propagation Effects of Remittances on the Vulnerability of External Trade of the Republic of Moldova en_US
dc.type Article en_US


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