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Diaspora transferts finance et développement économique
[Diaspora remittances finance and economic development]

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Listed:
  • Jellal, Mohamed

Abstract

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.

Suggested Citation

  • Jellal, Mohamed, 2014. "Diaspora transferts finance et développement économique [Diaspora remittances finance and economic development]," MPRA Paper 57410, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:57410
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Diaspora; Remittances; Financial Development; Institutions; Endogenous Growth; Micro-economic of Development;
    All these keywords.

    JEL classification:

    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F24 - International Economics - - International Factor Movements and International Business - - - Remittances
    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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