Labor migration and remittances in the Republic of Moldova: Are the remittances
efficiently used by migrant household?
This paper analyzes labor migration and remittances as a current phenomenon in the
Republic of Moldova. The aim is to investigate how migrant household are using money
received and to recommend how remittances can be productively invested. To be more
specific, the aim is to illustrate that the amounts received are used mainly for current
consumption and are not used for investments. In order to test the research question,
questionnaires, as primary data collection tool were distributed to 100 respondents who
have at least one family member currently working abroad and who are remittances
receivers. Pearson’s Correlation Coefficient was calculated to test the correlation between
labor migration, current ways of remittances distribution, transfer channel used by the
migrant and efficiency in remittances utilization. The obtained results met the expectations
and led to the conclusion that there is a significant correlation between current ways of
remittances distribution and efficiency in remittances utilization meaning that the more
money will be used for current consumption, the less efficient they are used. Regarding the other variables, the results showed that the relationship between them is weak.