Journal article

Workers' remittances and the Dutch disease in South Asian countries

Ripon Roy, Robert Dixon

Applied Economics Letters | ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD | Published : 2016

Abstract

Workers’ remittances have become an important source of foreign exchange for some emerging economies even when compared to official development assistance, foreign direct investment or other types of capital flows. While some research suggests that a high inflow of remittances lowers poverty and stimulates economic growth and financial development, other studies suggest that remittances can appreciate the real exchange rate and thereby hurt the competitiveness of the tradeable sector. In this article, we examine the Dutch disease argument for Bangladesh, India, Pakistan and Sri Lanka using a fixed effects model. We are unable to reject the null that there is a statistically significant appre..

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University of Melbourne Researchers