Remittances, Spending, and Political Instability in Ukraine

Abstract

This paper offers an analysis of remitt ances sent by Ukrainian emigrants to their country of origin. It explores how far the expenditure on remitt ances by individual Ukrainians and the total amount of all remitt ances received from abroad has been dependent on the political situation of the Orange Revolution and Presidential Elections in Ukraine in 2004. The author then investigated what effect the political instability in Ukraine had on how households there used such remittances. She used the results of a nationally representative survey of households in Ukraine to compare individual decisions to invest money received from remittances, and how those decisions depended on individual political views and future expectations. Changes in emigrants’ expectations might increase emigrants’ willingness to offer financial support to relatives remaining in Ukraine.