Valentina Vasile, Professor dr.
Institute of National Economy, Romanian Academy
Elena Bunduchi, Teaching Assistant drd.
University of Medicine, Pharmacy, Sciences and Technology of Tîrgu Mureş, Romania
Ștefan Daniel, Associate Professor dr.
University of Medicine, Pharmacy, Sciences and Technology of Tîrgu Mureş, Romania
Călin-Adrian Comes, Associate Professor dr.
University of Medicine, Pharmacy, Sciences and Technology of Tîrgu Mureş, Romania
Abstract
This research investigates the remittances impact, from the country of origin perspective, on economic growth at macro and micro level of the household in Romania and Moldova. We decided to carry out a comparative analysis due to the importance of these external financial flows to the economy. Although the share of remittances in the GDP of the two states differs due to the level of economic development, the constantly increasing labor migration is a common characteristic. In this research we applied time series regression model using tseries packages in R. The expected results of the research are to highlight the indicators influenced by the remittances in Romania compared to Moldova at macro and microeconomic level as well as the type and intensity of the generated impact. This research demonstrates that remittance-based economic growth is unsustainable and highlights the long-term negative impact on the country of origin of these financial flows.
Key words: Remittances, Time-Series Models, R packages, Romania, Moldova
JEL Classification: F24, C22, O52
