THE EFFECT OF COUNTRY RISK ON REGULAR DIASPORA REMITTANCES FLOW

Algeria has always worked to expand its foreign exchange earnings and draw in foreign capital, but it has overlooked a crucial component of this equation: remittance flows.Remittances are a crucial conduit for sustained economic growth because they have the potential to prevent balance of payments crises, offer a steady supply of foreign cash, and lessen the severity of poverty in emerging nations.Therefore, it is worthwhile to identify any remittance-influencing element and investigate it to see which remittances are sensitive to.Of these, country hazards are the most significant.Therefore, using the VAR model, this article attempts to determine the relationship between country risks and remittance flows associated with the diaspora (migrant remittances) in Algeria between 1984-2023.The study came to a finding that there is a one-way causal relationship between country risks and financial flows because the political, economic, and financial instability of the country has a negative impact on official migrant flows, which may prevent the country from diversifying its foreign income sources and, ultimately, lower its share of foreign currency.his prevents families and relatives from benefiting from diaspora flows and also makes it more difficult to support local and economic development.