The Macroeconomic Determinants of Remittance Flows from Russia to Tajikistan

Within the two decades of transition to market economy interdependence of the former Soviet Union countries is continuing. Labour migration between Russia and the former Soviet Union republics is one of the examples of this relationship. This paper defines the macroeconomic determinants of remittance flows from Russia to Tajikistan—the world’s top remittance-receiving country as a share of GDP. The paper demonstrates that the changes in the income available for the migrants and the possibility of migrants involvement in the labour market of the host country have a significant impact on their money transfers. Furthermore, remittance inflows are determined by the overall economic environment in the host and home countries as well as the global economy’s condition.