Title: Role of remittances in small Pacific Island economies: an empirical study of Fiji

Authors: T.K. Jayaraman, Chee-Keong Choong, Ronald Kumar

Addresses: 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.

DOI: 10.1504/IJEBR.2011.042316

International Journal of Economics and Business Research, 2011 Vol.3 No.5, pp.526 - 542

Published online: 22 Apr 2015 *

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