THE INTERACTIVE EFFECTS OF REMITTANCES ON ECONOMIC GROWTH AND INEQUALITY IN WESTERN BALKAN COUNTRIES

Hardly any studies have investigated the impact of migrant remittances on economic growth (EG) and inequality in Western Balkans as a whole (WB6). Using method instrumental variables (VI), findings show that while influence growth, their inflow also promotes high level migration absorbs large workforce by influencing labor market encouraging uncontrolled individual relocation. This paper reveals although eased income inequalities share country’s economy has declined over years. After testing for endogeneity controlling various variables, results indicate workers’ do not provide strong support inequality. For sample average, 1-percent rise (i.e., to GDP) will lead 0.10-percent cycle i.e. GDP respectively 0.05-percent drop people living The interactive effect foreign direct investment is lower than each factor.