Diaspora transferts finance et développement économique

Diaspora remittances finance and economic development

Mohamed Jellal ()

MPRA Paper from University Library of Munich, Germany

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.

Keywords: Diaspora; Remittances; Financial Development; Institutions; Endogenous Growth; Micro-economic of Development (search for similar items in EconPapers)
JEL-codes: F21 F24 F43 O12 O16 (search for similar items in EconPapers)
Date: 2014-07-18
New Economics Papers: this item is included in nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:57410

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