The Impact of Remitances on Albanian GDP and Economic Growth

Abstract

This paper includes a considerable part of Albania's macroeconomic, focusing mostly on remittances framework. The purpose
of this paper is to show through conducted analysis, the reality of remittances in Albania. These remittances have been evaluated from
their beginning up to now, by seeing consequences that brought these remittances, and focusing on the level they represent in Albania's
GDP. This paper begins with a historical overview of the factors that led to the start of remittances to Albania, and continues with
analyzing of remittances effect on the economy of Albania. The distribution of remittances in Albania is been presented according to
different urban and rural areas. The changes in remittances inflow are illustrated among years, and the paper focuses on the role of
remittances especially on its share in Albania’s GDP. This paper includes also graphics and their valuable interpretation. The
methodology which is used in this paper is, obtaining information from various sources and literature. The facts and analysis on the topic
has been adapted by highlighting my personal ideas on the matter. Based on the information regarding this paper, it can be concluded
that remittance inflows constitute a very important share in GDP and economic development of Albania. Lastly, a recomendation to
Albanian government would be that, these remittances which in many cases are used mostly for consumption, must be oriented towards
investment.