Role of Remittances in Economic Growth in Pacifi c Island Countries: A Study of Samoa

Abstract

Remittances have been a great support to Pacifi c island countries (PICs). Aside from providing additions to domestic savings and, hence, real resources, they have been one of the major sources of foreign exchange earnings. In the context of falling exports and limited options to diversify their exports, inward remittances have assumed greater importance. Th is paper examines the nexus between growth and remittances in Samoa.