Migrant remittances are a steadily growing external source of capital for developing countries. While foreign direct investments and capital market flows fell sharply in the last years due to the recession in the lower-middle income countries, migrant remittances continued to grow.
https://www.worldbank.org/content/dam/Worldbank/GEP/GEP2015a/pdfs/GEP15a_web_full.pdf
http://siteresources.worldbank.org/INTPROSPECTS/Resources/334934-1288990760745/MigrationandDevelopmentBrief24.pdf
The following can be interesting reads...
Chami, R., Cosimano, T. F., & Gapen, M. (2006). Beware of emigrants bearing gifts: optimal fiscal and monetary policy in the presence of remittances.
Lianos, T. P. (1997). Factors determining migrant remittances: The case of Greece. International Migration Review, 72-87.
Slddiqui, R., & Kemal, A. R. (2006). Remittances, trade liberalisation, and poverty in Pakistan: The role of excluded variables in poverty change analysis. The Pakistan Development Review, 383-415.
International transfers have always been part of GNP by traditional Macroeconomics textbooks. However if you have in mind any model with fundamental explanatory variables like exchange rates and interest rates I think it is more in the nature of a population variable like migration variable, somewhat radical and classical I would say. But that is my personal opinion I would say. I would suggest that you look at migration as some kind of negative externality (say pollution) and consider the investment lost by the home country for bringing up these people, as a tax. SKM PhD QC FEPC(D)
Thank, I consider money supply, GNP(GDP+Rem), Inflation, Interest rate and exchange rate with the help of a small open economy model. My findings suggest to me that There is a significant relationship. As Monetary authority control money supply; inflation rate and interest rate. So Monetary authority should take care as a monetary variable (Not controlling).
Dear Md Mahmud Hasan Shah
Greetings,
Please find three attached file about your question may be useful and interesting for you ,
Best Regards,
As evidenced by the papers sent by Faris Alshubiri I think the most important thing is how big remittances are with respect to domestic creation of money (i.e. open market operations and the likes)
the paper on Haiti is a case in point....
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