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Role of Financial Sector in the Remittances-Growth Nexus in Fiji

Author

Listed:
  • Hong Chen

    (Senior Researcher, China Institute of Economic Transformation and Opening, Sun Yat-Sen University, Guangzhou, China)

  • Tiru Jayaraman

    (College of Business, Hospitality and Tourism, Fiji National University, Nasinu Campus, Suva, Fiji Islands)

Abstract

Amongst the three kinds of non-debt creating capital transfers, welcomed by capital-short Pacific island countries (PICs) for supplementing their limited domestic savings, remittances presently top the list, the other two being foreign aid and foreign direct investment. Remittances help poor families, reducing poverty. In the long run, however, the contribution of remittances to growth in output and economic development is contingent upon financial sector development (FSD). PICs are now fostering financial sector development by promoting greater financial inclusion. This paper seeks to assess the role of FSD in the nexus between remittances and output by undertaking an empirical study of Fiji.

Suggested Citation

  • Hong Chen & Tiru Jayaraman, 2016. "Role of Financial Sector in the Remittances-Growth Nexus in Fiji," Remittances Review, Remittances Review, vol. 1(1), pages 17-36, October.
    • Handle: RePEc:mig:remrev:v:1:y:2016:i:1:p:17-36
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    References listed on IDEAS

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    1. Peter Nderitu GITHAIGA, 2019. "Foreign Remittances, Private Sector Investment and Banking Sector Development," Journal of Economics and Financial Analysis, Tripal Publishing House, vol. 3(2), pages 85-112.
    2. Ronald Ravinesh Kumar & Peter Josef Stauvermann, 2023. "Tourism and economic growth in the Pacific region: evidence from five small island economies," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 28(3), pages 894-921, July.
    3. Ibrahim Sirkeci & Andrej Přívara, 2017. "Cost of Sending Remittances from the UK in the Aftermath of the Financial Crisis," Remittances Review, Remittances Review, vol. 2(1), pages 47-56, May.

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