Impact Of Remittances on Kosovo's Economic Development and Poverty Reduction

The purpose of the paper is to study the role and impact of Remittances in supporting the economy of Kosovo. The study presents a detailed examination of the role of remittances as a source of financial support, as a complementary source of internal Investments, as well as the impact of remittances on the microeconomy and macroeconomy. The study also focused on immigrants' investments channel the funds into productive activities for generating income or increasing employment, the characteristics of Kosovar emigration, the assessment of the size, the geographical extent, the socio-economic aspect of Kosovar emigrants and the identification of the driving factors for migration abroad, assessing the potential of remittances and finding opportunities for their orientation in function of the country's development, identification of driving and stimulating factors for maximizing shipments and channeling them from non-productive consumption to investments in the development of productive business in the country, review of experiences in other countries regarding the use and management of remittances as a factor of economic development, etc, creation of appropriate policies regarding immigration, incentives for investments, reduction of fees for the transfer of remittances and providing ongoing administrative support and other facilities. Based on the analyzes that were conducted during the work, we discover the effects and impacts of remittances on the well-being of recipients such as: improving their lives, poverty alleviation, employment growth, raising the educational level and improvement in health condition. Through the implementation of such policies, the diaspora could contribute more efficiently to raising human and financial capital, to economic growth and to the creation of new jobs in Kosovo.