Remittances contribution to sustainable economic Development: Case of Republic Moldova

Abstract

Despite the magnitude and in, some cases, the major role remittances do have in many economies all over the world, the monitoring and estimation of these flows, as well their impact on home economies pose a lot of challenges for specialists in this area. We found that, concerning Republic of Moldova, no data exists on the real volume of the money transfers made by Moldovan emigrants to the country. All data rely on indirect measures produced by local and international institutions and think tanks that can be used to make an approximation of the volume of these flows, their structural characteristics and spillovers on country’s social and economic development. The main sources in this context are: the Balance of Payments elaborated by the National Bank of Moldova that is considered the most relevant source to make an estimation of remittances’ volume; the Household Budget Survey carried out by the National Bureau of Statistics (NBS) that presents data on remittances share on resident households income.