Moldova and employing simultaneous equations model we show that there exists a dual causality between receipt of remittances …Migration and the consequent flow of remittances are like a double-edged sword; while keeping many out of poverty, they … first to be able to specify the mechanism behind the link between remittances and migration. We find evidence that …

Since the 1990s, Moldova has relied on migration as a vent for labour oversupply and on inflows of migrant remittances … as its main engine of economic growth. Labour migrants account for almost a quarter of the labour force and Moldova is … not sustainable in the long run and Moldova must widen its home resource base to create conditions favourable to achieving …