This article reports on a study examining the impact of remittances on economic development and the labour market structure in Albania, focusing on both short-term and long-term effects. The methodology follows a quantitative approach, utilising data from the Bank of Albania, INSTAT and international organisations for the period 2015-2024. Analysis of this data was conducted using multiple regression models to assess the correlation between remittances, economic growth and shifts in the labour market. Remittances do have a positive influence on consumption and investment but they may also contribute to the participation rate being lower than what it might otherwise be as a result of economic dependency, while also creating other market and socioeconomic distortions. The study adds to the existing literature by providing policy recommendations to enhance the productive use of remittances and strengthen labour market participation in Albania so that remittances can move beyond their short-term welfare benefits towards being the foundation of a more resilient and dynamic economic model.
Elezi et al. (Wed,) studied this question.