India has been among the top ten remittance recipient countries in the world since the 1970s. In the context of the ongoing worldwide recession and uncertain export prospects, mobilisation of foreign exchange earnings has assumed greater importance. Given the intensification of financial sector development together with relatively stable capital inflows (FDI and ODA) and the efforts towards formalising the channels of remittance inflows, we find that remittances and the interaction between remittances and financial sector development have had a positive and significant effect on growth over the last four decades . In the light of these findings, it is proposed that the proactive policy measures in India should continue for encouraging remittance inflows for long-term growth and development.
In the midst of declining external demand due to the world economic downturn since 2008, the tourism sector has emerged as a major source of support to the South Pacific island countries, including Fiji. Tourists from the region's two advanced economies, Australia and New Zealand, find Fiji a more affordable tourist destination than distant European and Asian holiday resorts. The development of the tourism sector in Fiji owes much to foreign direct investment (FDI) in hotels, resorts and other infrastructural facilities. This paper uses bounds cointegration technique and investigates the contribution of FDI to Fiji's tourism sector. The analysis identifies positive associations between FDI and tourism earnings as well as between currency depreciation and tourism earnings.
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