Information on the thesis

This research focuses on the problem of remittances impact on the economy of the donor and the recipient country. The evolution of classical views and modern scientific paradigm on the issue of international migration and determinants of remittances is analyzed. The confirmation of altruistic model is received using econometric models for panel data with fixed effects which prove that, in particular, the main function of remittances is the compensation for poor economic performance in the country of origin.

It analyzes the link between the individualism and collectivism dimension, defined by the Hofshtede index, and the phenomenon of migration, in particular, to investigate the impact of cultural environment on the desire and ability of migrants to remit. Based on correlation and regression analysis the suggested relationship isn’t confirmed.

The basic mechanisms of remittances impact on the economy of the donor and the recipient country are analyzed. Impact of remittance inflows on the economy of Ukraine is evaluated using small structural model and vector autoregression model (VAR). It is identified in short term a positive impact of remittances on the economic growth and interest rates. In particular, interest rate is confirmed to be the main mechanism of remittances impact on the economy of Ukraine. It is proved that remittances cause the appreciation of the national currency, also stimulate the development of inflation in the long term period.

Effects of remittance outflows on the economy of Poland are evaluated using small structural model and VAR-model. A direct link between the remittance outflows and economic growth of the country is confirmed. VAR-model shows that the outflows of remittances stimulate the devaluation of the currency. Nevertheless, the results of small structural model prove the stability of the economy of Poland to remittance outflows.

Aspects of accounting remittances as far as main channels of remittance inflows to Ukraine are described. Based on the analysis of the Balance of payments and international investment position manual (BPM6) it is recommended to implement a full transition to the balance of payments publication under the BPM6 principles in the countries where this process is not completed.

Estimations reveal that the actual remittance inflows to Ukraine represent a half of the official data, stimulating the growth of the shadow economy. It is calculated that in the short term remittances prompt the dollarization of the economy of Ukraine.

Implementation of the coherent policy aimed at reducing remittances cost, an introduction of bank initiatives that encourage individual and collective investments and  the improvement of mechanisms for remittances legalization are proposed to be the main recommendations for achieving the economic growth of Ukraine.

Keywords: remittances, international migration, donor country, recipient country.