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

Authors

  • Hong Chen China Institute of Economic Transformation and Opening, Sun Yat-Sen University, Guangzhou
  • Tiru Jayaraman Fiji National University Fiji Islands

DOI:

https://doi.org/10.33182/rr.v1i1.441

Keywords:

Remittances, financial sector development, output, Fiji, cointegration

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.

Author Biographies

Hong Chen, China Institute of Economic Transformation and Opening, Sun Yat-Sen University, Guangzhou

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

Tiru Jayaraman, Fiji National University Fiji Islands

Professor

Economics Department

Published

2016-09-04

How to Cite

Chen, H., & Jayaraman, T. (2016). Role of Financial Sector in the Remittances-Growth Nexus in Fiji. Remittances Review, 1(1), 17-36. https://doi.org/10.33182/rr.v1i1.441

Issue

Section

Articles