ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles By Poonam Gupta

Macroeconomic Determinants of Remittances

Remittances to India have been growing rapidly since 1991, making the country one of the largest recipients of remittances in the developing world. This paper analyses the determinants of remittances to India and finds that their growth over time can be explained by the increase in migration and total earnings of migrants. Remittances are also affected by the economic environment in source countries, and appear to be counter-cyclical - i e, higher during periods of low economic growth in India. None of the remaining economic or political variables considered in the paper, including political uncertainty, interest rates or exchange rate depreciation, are found to affect remittances significantly.