The impact of remittances on Albania's GDP

Abstract
The article will discuss the impact of remittances on Albania’s GDP it is organized
in four sections. The positive and negative theories of remittances, their distribution
methods, kinds, and their theoretical link to GDP will be discussed in the first section.
The second section will discuss the results of the VAR model’s investigation of the influence
of remittances on GDP, as well as a summary of their conclusions. The other segment will
look at the micro impact of remittances, by conducting a survey of remittance’s recipients
and summarizing their findings. The last part will discuss the study’s findings, as well
as pertinent references. Official statistics is expected to record more remittances, even
though the real number of remittances may drop, because digital transfers are better
documented than cash remittances, especially those made by hand or transferred through
other informal channels. Between 1992, when the first emigrant inflows began, until
the end of 2019, some USD 29 billion in migrant inflows have entered the Albanian economy. During the last ten years, the average yearly inflow has been around 10% of
GDP. They have provided revenue for 13% of the family’s budget. The money was split
half and half between food and education and other programs. As banks have curtailed
services for migrants to 10 years, the current wave of migration has recovered the growth
in remittances. What is the economic impact of remittances?