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Remittances Sent To Eu New Member States: Do The Make A Difference For The Household Consumption?

Author

Listed:
  • Zizi GOSCHIN

    (partment of Statistics and Econometrics, Bucharest Academy of Economic Studies, Romania and Institute of National Economy, Romanian Academy.)

  • Bogdan ILEANU

    (Department of Statistics and Econometrics, Bucharest Academy of Economic Studies, Romania.)

Abstract

Researches all over the world have revealed that remittances might have a large range of effects in the receiving countries, both at micro- and macroeconomic level. In this context, our paper addresses the question of how much influence the remittances have on the aggregate consumption of households in EU new member states. We answer this question by means of an econometric model, using macroeconomic datasets provided by the World Bank. For reasons of data availability and comparability between the countries, the analysis was limited to the period from 1995 to 2009. We developed a panel data model to appraise the effects of the remittances on the living standard in countries of origin, using as dependent variable the household final consumption per capita and as regressors: earnings, remittances, credits, taxes, GDP per capita, unemployment, imports, etc. We applied fixed-effects, as well as random-effects panel regressions, but found no evidence that the growth in the amount of remittances conveyed through the official network has significantly influenced the household consumption in EU new member states.

Suggested Citation

  • Zizi GOSCHIN & Bogdan ILEANU, 2013. "Remittances Sent To Eu New Member States: Do The Make A Difference For The Household Consumption?," Journal of Social and Economic Statistics, Bucharest University of Economic Studies, vol. 2(2), pages 22-38, DECEMBER.
    • Handle: RePEc:aes:jsesro:v:2:y:2013:i:2:p:22-38
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    migration; remittances; consumption; EU new member states.;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances

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