The Importance of Remittances as a Foreign Source of Financing in Kosovo
This paper aims to present the importance and effect of remittance flows in the context of receiving foreign
funds. Remittances from Kosovar migrants constitute one of the most important source of the foreign flows and in
microeconomic terms represent one of the most important sources of households income because of the great
dependence of households on them. This paper will also present data and analysis regasrding to the trend of migration
and remittances, influenced factors on variable phenomena, the importance of remittance flows in macro and micro
economic terms. The paper finds that remittances are not only related to remittances flows to Kosovo, but also with
other contribution forms such as expenses, money, purchases and other expenses they execute during their stay in
Kosovo; remittance flows are significant as a share of GDP. This share is the highest in the region. The paper also
shows how remittances have a very important role in mitigating the balance of payments deficit.
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