Labor migration and remittances in the Republic of Moldova : are the remittances efficiently used by the migrants' households?

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Fetiniuc, Andrei
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MBA in Business Management
Dublin Business School
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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.