Abstract. This paper examines the impact of remittances on domestic demand in Romania using a log-linear OLS model based on macroeconomic data for 2015–2024. While GDP growth and inflation emerge as the primary drivers of household consumption, remittances show a positive but statistically insignificant effect once macroeconomic fundamentals are controlled for. The results suggest that remittances support short-term welfare but play a limited role in shaping aggregate demand. The study highlights measurement challenges and calls for policies that better channel remittance inflows toward investment and long-term economic development.

Keywords: remittances, household consumption, domestic demand, Romania, macroeconomic analysis.