THE OFFICIAL DEVELOPMENT ASSISTANCE AND THE REMITTANCE’S DETERMINANTS: CONVERGENCE OR DIVERGENCE?
Keywords:
Economic growth, official development assistance, remittances, foreign direct investment, developing countriesAbstract
Remittances constitute a significant external financing source for developing countries. Nowadays, they represent the second largest external financing source for development, after foreign direct investment. However, the literature on remittances has mainly identified the impact of remittances on economic growth and the microeconomic determinants of remittances.
In this work, we seek to answer different questions. First, what are the main macroeconomic determinants that may lead remittances of emigrants? Then, what is the impact of these determinants on remittances, official development assistance’s flows and foreign direct investment? We will try to compare this impact to the one exercised over shipments. Finally, on the basis of this comparison we will check if remittances are correlated with other external capital flows.
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