The Influence of International Remittances on Poverty in Kyrgyz Republic

Abstract

This study was devoted to the impact of the international remittances on poverty because the phenomenon of international migration and remittances as well as their influence on poverty reduction in different countries across the World increases from year to year. Due to significant share of remittances in GDP of the Kyrgyz Republic – about 28 percent of GDP - they are considered as an important component of GDP and local macroeconomic policy. Nevertheless, there is a definite complication in dealing with remittances. Inefficient way of some share of remitted money becomes a major impediment for policy-makers. Based on the annual data of National Statistical Committee, National Bank of Kyrgyz Republic and the World Bank from 1996 to 2012 the effect of remittances was explored.