| Abstract [eng] |
Currently, the world is facing a lot of geopolitical and climate change challenges. Consequently, the number of areas where living conditions are extremely difficult and unbearable is increasing, which forces locals to search for solutions that could ensure safety and essential needs. One of the most widely used action that could help is emigration, which allows you to improve your and your loved ones’ living conditions. Remittances, which flood into the receiving country and have a significant impact on social and economic indicators at the micro and macro levels, best reflect a strong bond between the migrant and his or her homeland. Many studies rely on analyzing a single country or on using generalized methods to draw conclusions about a group of countries without looking into individual countries at a detailed level. This study analyses how remittances impact individual countries' social and economic indicators. In order to form regression equations after reviewing the literature, two separate theoretical models were formed on social and economic indicators. We assessed whether remittances have a substantial impact on social and economic indicators and whether this linear relationship is negative or positive utilizing data from the 1990-2020 timeframe for robust residuals multiple regression models. Because correlation does not indicate causation, we used causality analysis to see if remittances are affecting changes in the time series of social and economic indicators. Before causality analysis, we performed clusterization on countries' remittances amounts and divided all the countries into three different clusters. In each cluster, we evaluated the direction of causality, the impulse response function of social and economic indicators to a unit shock of remittances, as well as the percentage of social and economic indicator time-series variance that remittances explain. |
