THE IMPACT OF REMITTANCES ON THE ECONOMY OF KYRGYZSTAN

Globalization enables free movement of human and financial resources in the world economy between countries. Following Kyrgyzstan's independence, enterprise closures triggered significant labor migration. This study examines the impact of remittances, which constitute 26.6% of GDP, on economic development. Using quarterly data from the National Bank of the Kyrgyz Republic (2008-2021), an econometric analysis with the ARDL model in E-Views 12 was performed. The findings indicate that a $1 increase in remittances results in a $2.4881 GDP increase. Post-economic shocks, recovery progressed by 72% within the first year, fostering small business growth and financial sector development.