ECONOMIC DEVELOPMENT OF THE REPUBLIC OF MOLDOVA BASED ON REMITTANCES

This article examines the effects of remittances on the economic growth of the Republic of Moldova, determined by private consumption. To verify the link between remittances and development in the Republic of Moldova, the study uses a VECM approach. The result of the research is that, for the Republic of Moldova, remittances are an important source for private consumption, which in turn fuels the economic evolution of the country. In order to redirect remittances to investments, the government is implementing various strategies, which do not yet have the expected support of remittance holders.