CASE STUDY: Role of remittances in Tongan economy
Keywords:Remittances, economic growth, financial sector development, bounds test, Tonga
Inward remittances have been a great support to Pacific Island Countries, including Tonga. Aside from being a major source of foreign exchange earnings, they supplement domestic savings and real resources. This paper examines the role of remittances in the economic growth of Tonga’s during a 28 year period (1981-2007).