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CASE STUDY: Role of remittances in Tongan economy

T. K. Jayaraman, Chee-Keong Choong, Ronald Kumar


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).


Remittances; economic growth; financial sector development; bounds test; Tonga

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