Diaspora remittances finance and economic development
| Autor: | Jellal, Mohamed |
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| Rok vydání: | 2014 |
| Předmět: | |
| Popis: | Remittances by migrants to their countries of origin constitute the largest source of external finance for developing countries after foreign direct investment . To shed light on this important fact, in this paper we consider a model of micro-foundations of the links between remittances finance and endogenous growth. Our theoretical set up helps to show how local financial system development and the quality of institutions influence a country’s capacity to take advantage of remittances. Among others new findings , we show that remittances foster economic growth in countries with less developed financial sector by providing a substitute tool to finance investment and contribute to overcome liquidity constraints and help undertake profitable investment. |
| Databáze: | OpenAIRE |
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