02113cas a2200241 a 4500 AALejournalIMF014600 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498376150 1934-7685 BD-DhAAL BD-DhAAL International Monetary Fund. European Dept. Former Yugoslav Republic of Macedonia : Selected Issues. Washington, D.C. : International Monetary Fund, 2014. 1 online resource (22 pages) IMF Staff Country Reports <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This Selected Issues paper on Former Yugoslav Republic (FYR) of Macedonia investigates the macroeconomic impact of remittances on long-run external sustainability and growth. The paper presents stylized facts pertaining to the characteristics of remittances in Macedonia, highlighting their countercyclicality and importance in sustaining the purchasing power of domestic agents. The paper reviews to help set up a theoretical framework for assessing their macroeconomic impact, highlighting the possible risk of 'Dutch disease' developments. The paper uses a Bayesian vector autoregression (BVAR) model to empirically investigate both hypotheses of countercyclicality and Dutch disease effects and puts forward a few policy options that may be explored to better harness remittances to support investment and long-term growth. The paper suggests that strong political engagement in support of diaspora projects is a key point. The mobilization of diaspora savings for private and public investment would maximize the long-term benefits of remittances. Mode of access: Internet IMF Staff Country Reports; Country Report ; No. 2014/232 Full text available on IMF http://elibrary.imf.org/view/journals/002/2014/232/002.2014.issue-232-en.xml IMF e-Library