INFLUENCE OF REMITTANCES FROM ABROAD ON GROSS DOMESTIC PRODUCT OF BOSNIA AND HERZEGOVINA

Abstract

Attention in this article is focused on the economic effects of emigration on the home country, and especially on the effects of remittances from abroad, which represent the most significant positive economic effect. After reviewing the negative and positive economic effects of emigration, an overview of the basic characteristics of remittances is given. The aim of this paper is to determine whether remittances from abroad have a statistically significant impact on the movement of the value of GDP of Bosnia and Herzegovina. In this context, the amount of remittances arriving in B&Н, their share in GDP, structure by country of origin and the comparison of remittances from abroad with foreign direct investments were presented first, followed by the empirical part. In this part, the impact of remittances from abroad on the GDP of Bosnia and Herzegovina was examined using a multiple linear regression model with six explanatory variables.