Insight · 28 March 2012
Remittances & Economic Growth: Larger Impacts in Smaller Countries?
The paper finds that remittances have a positive impact on growth in Small Island Developing States (SIDS), but not in other countries. The result for the Pacific is striking suggesting that without remittances these countries would have recorded an average growth rate of -0.74 per cent during 2000-2009. The paper concludes with a call for further research on links between remittances and growth that reveals the channels though which remittances drive growth.