The Impact of Remittances on Economic Development and the Labor Market Structure in Albania

Abstract

This study examines the impact of remittances on economic development and labor market structure in Albania, focusing on both short-term and long-term effects. The methodology follows a quantitative approach, utilizing data from the Bank of Albania, INSTAT, and international organizations for the period 2015-2024. The data analysis is conducted using multiple regression models to assess the correlation between remittances, economic growth, and labor market shifts. The findings indicate that remittances positively influence consumption and investment but also contribute to a decrease in labor force participation due to economic dependency. The study adds to the existing literature by providing policy recommendations to enhance the productive use of remittances and strengthen labor market participation in Albania.