Title:
Linkages Between Unemployment, FDI, Remittances, and Economic Growth: Panel Evidence From Southeast and Eastern Europe (2012–2022)

Authors:
Zana Sherifi, Shpresa Syla, macedonia

Abstract:

This study examines the relationship between unemployment, FDI, remittances, inflation, and GDP in 10 Southeastern and Eastern European countries Kosovo, Albania, Montenegro, Greece, Romania, Croatia, Serbia, Bulgaria, Bosnia and Herzegovina, and North Macedonia over the period from 2012 to 2022. The study uses different techniques such as pooled OLS, fixed and random effects and Hausman Taylor IV. The analysis shows that GDP is positively impacted by foreign direct investment (FDI), remittances, and moderate inflation, while an inverse relationship is observed between unemployment and GDP. Integrated strategies should be implemented to reduce unemployment, attract foreign investments, optimize remittance utilization, and maintain price stability to promote sustainable economic growth. Further research should be conducted to include detailed country-level analyses, providing deeper insights into the unique economic challenges and opportunities in Southeast and Eastern Europe. This study provides a novel contribution by examining the relationship between unemployment, remittances and GDP, offering valuable insights for the Southeast Eastern Europe Countries.

DOI: https://doi.org/10.51505/IJEBMR.2025.91113