Title: Role of remittances in small Pacific Island economies: an empirical study of Fiji
Author: T.K. Jayaraman, Chee-Keong Choong, Ronald Kumar
Faculty of Business and Economics, School of Economics, University of the South Pacific, Suva, Fiji Islands.
Faculty of Business and Finance, Centre for Economic Studies, Universiti Tunku Abdul Rahman (Perak Campus), Jalan Universiti, Bandar Barat, Kampar, Perak 31900, Malaysia.
Faculty of Business and Economics, School of Government, Development and International Affairs, University of the South Pacific, Suva, Fiji Islands
Abstract: In the context of the ongoing current global economic downturn, mobilisation of foreign exchange earnings has assumed considerable importance. By adopting an augmented Solow model approach, this paper examines the long-run growth effects of Fiji's inward remittances during a three-decade period (1979–2008). The study finds that remittances have had a positive and significant effect on economic activities. This paper also discusses some important policy implications arising out of the study findings.
Keywords: inward remittances; economic growth; augmented Solow model; Pacific Island economies; Fiji; foreign exchange earnings.
Int. J. of Economics and Business Research, 2011 Vol.3, No.5, pp.526 - 542
Available online: 04 Sep 2011