Author(s): Besmir Collaku, Safet Merovci
The objective of this paper is to study the impact of remittances upon the origin country of emigrants. To achieve our purpose, we have performed a quantitative analysis by using the ordinary least squares method (OLS), i.e., the Pooled Regression. The empirical research focused on the influence of remittances on the economic activity in WB countries, with emphasis on Kosovo. Our results are in accordance with the recent studies in the field and conclude that the effect of remittances on economic growth is statistically significant. We found that, for each 1% increase in remittance of Western Balkan countries, the GDP will increase on average by 0.12%, holding the other variables constant. The productive use of remittances has a direct impact on economic activity in the country of origin.