RRPP: Migration and development in Albania and Macedonia: the effects of remittances on education and health of family members left behind
Analytica is happy to announce the winning of the project titled: Migration and development in Albania and Macedonia: the effects of remittances on education and health of family members left behind funded by the Regional Research Promotion Programme for the Western Balkans of the Swiss Agency for Development and Cooperation. Analytica will implement this project together with its partner from Albania: the Albanian Centre for Social-Economic Research in Tirana.
Summary of the project:
Albania and Macedonia are undergoing a transformation of their economic systems that has resulted in similar economic conditions with weaknesses in social protection system as well as in financial sector and heavy reliance on remittances as a source of external finance. Remittances play an important role providing complimentary social protection and correcting the limited government policy interventions. The effect of remittances is not only multidimensional but in terms of duration their impact might be in short as well as in long-term. The short-term effect is usually related to increases in consumption, poverty alleviation and income inequality that result in changes in labour market participation. While long-term effect is more pertinent to socio-economic development and specifically, education performance and health status improvement. The research on the region about the long-term effects of remittances especially education as well as health outcomes is very limited and through this project we intend to give our contribution with novel research by tackling the topics of how the remittances affect health outcome and education performance.
Relevant policy implications can be derived from this study. Under the hypothesis of a positive effect of remittances on child education and health outcomes due to the lift of liquidity constraints, policies that loosen these constraints should be promoted. It is a well-documented fact that these two small developing countries (Albania and Macedonia) are characterized by a high dependency rate on remittances. Therefore, the accumulated knowledge through this research will be important not only at national level but also at regional level.
The outcome from this research will be: 1- the two survey databases; 2- three working papers; 3-organisation of a regional workshop; 4- one policy paper highlighting the relevant issues and policy recommendations from the main findings. Several policy implications can be derived from this study. A positive effect of remittances on education and child health outcomes would enrich the policymakers with novel evaluation tools and induce them to introduce new measures which would contribute to the efficient channelling of these financial flows.
This project will be implemented in period of 18 months.