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Remittances, Consumption And Investments In Ukraine: VAR/VEC Estimates

Author

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  • Iryna Kurevina

    (Lviv Academy of Commerce)

Abstract

Using VAR/VEC model, multivariate relationships between remittances and private consumption and investments as two components of aggregate demand are estimated. It is found that remittances are inversely related to private consumption, while being neutral in respect to investments. Our results are in support of the altruistic motivation behind remittances from workers abroad. As an increase in private consumption leads to a decrease in investments, and vice versa, it is among structural weaknesses of Ukraine’s economy.

Suggested Citation

  • Iryna Kurevina, 2014. "Remittances, Consumption And Investments In Ukraine: VAR/VEC Estimates," Ukrainian Journal Ekonomist, Yuriy Kovalenko, issue 2, pages 11-14, February.
    • Handle: RePEc:uje:journl:y:2014:i:2:p:11-14
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    References listed on IDEAS

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