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The Global Flea Market: Migration, Remittances and the Informal Economy in Tonga

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  • Richard P. C. Brown
  • John Conneil

Abstract

Some common assumptions about the form and use of migrants' remittances in the South Pacific are examined and questioned in the light of information from a micro‐economic study of one group of remittance recipients in the flea market of Nuku'alofa, the capital of the Kingdom of Tonga. The findings of this study suggest that economic analysis and policy recommendations based on the existing macro‐economic data on recorded remittances and other economic aggregates should be treated with caution. The unrecorded inflows of remittances in kind and the associated spread of the domestic informal sector have had some important implications for the functioning of Tonga's economy. There is some evidence to suggest that the growth of informal, international trade is fostering other significant changes in the domestic economy. The functioning of remittance‐dependent economies such as Tonga is much more complex than existing economic analysis suggests, and involves substantial investment – not just consumption – with the emergence of entrepreneurs and the manipulation of dependence, rather than merely passive receipt of cash and expenditure focused on consumption.

Suggested Citation

  • Richard P. C. Brown & John Conneil, 1993. "The Global Flea Market: Migration, Remittances and the Informal Economy in Tonga," Development and Change, International Institute of Social Studies, vol. 24(4), pages 611-647, October.
    • Handle: RePEc:bla:devchg:v:24:y:1993:i:4:p:611-647
    DOI: 10.1111/j.1467-7660.1993.tb00499.x
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    References listed on IDEAS

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    1. Bertram, Geoffrey, 1986. ""Sustainable development" in Pacific micro-economies," World Development, Elsevier, vol. 14(7), pages 809-822, July.
    2. Ashwani Saith, 1992. "Absorbing External Shocks: The Gulf Crisis, International Migration Linkages and the Indian Economy, 1990 (with special reference to the impact on Kerala)," Development and Change, International Institute of Social Studies, vol. 23(1), pages 101-146, January.
    3. Choucri, Nazli, 1986. "The hidden economy: A new view of remittances in the arab world," World Development, Elsevier, vol. 14(6), pages 697-712, June.
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    Cited by:

    1. Phadera, Lokendra, 2016. "International Migration and its Effect on Labor Supply of the Left-Behind Household Members: Evidence from Nepal," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235968, Agricultural and Applied Economics Association.
    2. Richard Brown & Gareth Leeves, 2011. "Comparative effects of migrants' remittances on composition of recipient household income in two small, island economies," Applied Economics, Taylor & Francis Journals, vol. 43(27), pages 3965-3976.

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