Remittances Vis-à-Vis Bank Credit and Investment: Evidence From Fiji

Abstract

This study is among a very few to investigate the impact of international remittances on bank credit and household investment. Using Fiji as a case study and the most recent available data on Household Income and Expenditure Survey together with applying three distinct econometric techniques, we find that remittances significantly increase the likelihood that households receiving remittances obtain income from investing. Remittances also positively influence the value of bank credit, although this effect is statistically weak.