The Effect Remittances Have on the Living Standards of Albanians and on Country’s GDP

Filloreta Madani; Oltiana Muharremi; Erald Pelari

Authors

Filloreta Madani Vlora “Ismail Qemali”, Faculty of Economy L. Pavaresia, Vlore, Albania
Oltiana Muharremi Lecturer in Accounting and Finance, PhD student University of Vlora “Ismail Qemali”, Faculty of Economy
Erald Pelari Lecturer in Finance University of Vlora “Ismail Qemali”, Faculty of Economy L. Pavaresia, Vlore, Albania

Abstract

Albania remains one of the countries with the lowest income in Europe. Poverty has forced many people since 1990 to migrate mainly toward Europe in search of a better life. The majority of immigrants have repeatedly sent the savings to their families in Albania. These remittances have significantly improved the Albanians’ daily living and simultaneously have a positive impact on the growth of Gross Domestic Product. In recent years, due to the global crisis, there is a decrease in remittances from emigrants and simultaneously an increase in the number of emigrants who are returning home definitely, in order to work and live in Albania. These immigrants, once returned home, are investing their savings mainly in the area of services. In this article we will examine to what extend is the impact of remittances on the lives of Albanians and GDP, as well as factors that have led to an increase or decrease of this impact.

DOI: 10.5901/mjss.2013.v4n10p415