Management of remittances and their role in economic development in Kosovo

Abstract

In the Republic of Kosovo remittances have been and continue to be one of the contributors to economic development and have served as a source of household income. Remittances at the national as well as at the global level are an essential element of combating poverty, and can be said to represent one of the largest flows of financial resources at the global level. The main purpose of this article is to analyze the impact of remittances on economic growth, present the comparability of remittance trends over the years, remittance management, in the Kosovo case. The findings of the study should serve as an important input in improving the management of remittance policies and strategies by the Kosovo government in order to increase the impact of remittances on Kosovo's economic development. Trend analysis shows that remittances in Kosovo continued to grow steadily from 2005 to 2018; remittances were greater in 2015 worth € 772 million, one of the main reasons for remittances to Kosovo, results to be the support of the households, while the largest share of Kosovar emigrants' investments was in the construction sector, where investment in the sector was over 40%.