Remittances matter: longitudinal evidence from Albania

Using the LSMS panel data collected by the World Bank in Albania from 2002 to 2004, this article focuses on the determinants and financial implications of remittances sent by family members and adult children living abroad. Our econometric analysis draws on random and fixed effects discrete choice models. We find that the proportion of households receiving remittances is large. These transfers are negatively correlated with both the donor's and the recipient's level of education. Finally, remittances have a positive impact on economic indicators like satisfaction with current situation, adequateness of food consumption and number of affordable expenditures.