Diaspora Contribution to the Economic Development of the Republic of Serbia: Remittances and Investments

Đukić, Mihajlo and Bodroža, Duško (2022) Diaspora Contribution to the Economic Development of the Republic of Serbia: Remittances and Investments. In: Economic and Financial Implications of Covid-19 Crises. Université Côte d'Azur, Nica, pp. 181-199. ISBN 978-2-493478-00-9

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Abstract

This chapter analyzes current and potential ways through which diaspora business
engagement has had impact on the Serbian economy. The chapter focuses on the
institutional framework established with an aim to stimulate cooperation between
diaspora and local business entities, remittance inflow patterns, as well as potentials
for enhancing knowledge transfer practices. Moreover, the links between remittance
and key macroeconomics variables (GDP growth, current account balance and
exchange rate) have been analyzed. The analysis of the institutional and regulatory
framework shows that Serbia has already developed a solid institutional framework for
diaspora engagement. The potential of the informal diaspora organizations and
diaspora related business associations seems still underexploited. The analysis showed
that remittances represent important factor which help avoiding the adverse effects of
macroeconomic shocks, having countercyclical character. Generous remittance
inflows accounted for the almost 80% of the balance of payments deficit in the last
decade. Therefore, a stable remittance inflows significantly contributed to the stability
of the exchange rate, even putting pressures to appreciate. However, there should be
developed more sophisticated policy measures to stimulate diaspora-related
investments since the largest share of remittances has been directed to the personal
consumption.

Item Type:	Book Section
Additional Information:	COBISS.ID=65703945
Uncontrolled Keywords:	diaspora, remittances, development, Serbia, investments, COVID-19
Research Department:	Macroeconomics
Depositing User:	Jelena Banovic
Date Deposited:	18 Oct 2022 14:08
Last Modified:	18 Oct 2022 14:08
URI:	http://35.240.28.64/id/eprint/1797
Author Links:	[error in script] No links available.

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