Advanced

Remittances and Poverty in Albania

Hoti, Erudita (2009)
Department of Economics
Abstract
With increasing labor and capital mobility in the world, remittance flows have risen significantly to become the second source after FDI of external funding for developing countries. Remittances are now viewed by many development practitioners as an important development tool for recipient countries. This paper studies the impact of remittances on poverty in Albania –one of the top 20 remittance-receiving countriesin the world. It is found that remittances have a significant impact on the reduction of absolute povertyin the country by directly raising household income and consumption. However, sinceemigration is costly, remittances do not reach the poorest individuals, which can have a negative impact on inequality. Moreover, there seems... (More)
With increasing labor and capital mobility in the world, remittance flows have risen significantly to become the second source after FDI of external funding for developing countries. Remittances are now viewed by many development practitioners as an important development tool for recipient countries. This paper studies the impact of remittances on poverty in Albania –one of the top 20 remittance-receiving countriesin the world. It is found that remittances have a significant impact on the reduction of absolute povertyin the country by directly raising household income and consumption. However, sinceemigration is costly, remittances do not reach the poorest individuals, which can have a negative impact on inequality. Moreover, there seems to be a high degree of dependency on remittances in Albania, both on the micro and macro level. Therefore, the sustainability of this source of income is of special concern. (Less)
Please use this url to cite or link to this publication:
author
Hoti, Erudita
supervisor
organization
year
type
M2 - Bachelor Degree
subject
keywords
remittances, migration, poverty, consumption, inequality, trade balance, Economics, econometrics, economic theory, economic systems, economic policy, Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik
language
English
id
1487481
date added to LUP
2009-10-08 00:00:00
date last changed
2010-08-03 10:52:51
@misc{1487481,
  abstract     = {With increasing labor and capital mobility in the world, remittance flows have risen significantly to become the second source after FDI of external funding for developing countries. Remittances are now viewed by many development practitioners as an important development tool for recipient countries. This paper studies the impact of remittances on poverty in Albania –one of the top 20 remittance-receiving countriesin the world. It is found that remittances have a significant impact on the reduction of absolute povertyin the country by directly raising household income and consumption. However, sinceemigration is costly, remittances do not reach the poorest individuals, which can have a negative impact on inequality. Moreover, there seems to be a high degree of dependency on remittances in Albania, both on the micro and macro level. Therefore, the sustainability of this source of income is of special concern.},
  author       = {Hoti, Erudita},
  keyword      = {remittances,migration,poverty,consumption,inequality,trade balance,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Remittances and Poverty in Albania},
  year         = {2009},
}