International Conference on Eurasian Economies
11-13 October 2012 – Almaty, KAZAKHSTAN
Paper detail
Paper ID : 534
Status : Paper published
Language : English
Topic : Growth and Development
Presenter:
Session : 1A Growth & Development
The Impact of Remittances on Kyrgyzstan Economy
The Impact of Remittances on Kyrgyzstan Economy
- Dr. Kyialbek Akmoldoev (International Ataturk Alatoo University, Kyrgyzstan)
- Aidai Budaichieva (International Ataturk-Alatoo University, Kyrgyzstan)
Abstract
Data of the worker’s remittance flow in the period of 2000-2010 were employed to analyze the impact of remittances on macroeconomic indicators of the Kyrgyz Republic. Focus was given to the assessment of remittance effect on economic effectiveness. To study the underlying issue, linear correlation method and economic performance effectiveness index were used. Results showed that great portion of remittances has been directed into consumption rather than to investment. Moreover, remittance spending is channeled into consumption of imported goods, thus raising the trade deficit of a country. Their impact on economic effectiveness of Kyrgyzstan presents that given the low propensity to invest, they finance consumption and cause high consumption ratio with respect to investment ratio, thus leading to reduction of economic effectiveness.
JEL codes: F22, O15, F36
Akmoldoev, Kyialbek, Budaichieva, Aidai (2012). "The Impact of Remittances on Kyrgyzstan Economy" in Proceedings of International Conference of Eurasian Economies 2012, pp.6-12, Almaty, KAZAKHSTAN.
DOI: https://doi.org/10.36880/C03.00534
Session 1A: Growth & Development
