Remittances to Lebanon: Economic Impact and the Role of Banks

Awdeh, Ali (2014): Remittances to Lebanon: Economic Impact and the Role of Banks. Published in: ESCWA Publications (2014)

Abstract

Lebanon is one of the largest remittance-receiving countries worldwide, where remittances have exceeded one fifth of its nominal GDP and surpassed financial inflows from both exports of goods and services and foreign direct investments over the past decade. This study analyzed several aspects of remittances received by Lebanon and found that these remittances considerably boost non-resident deposits in domestic banks. Nevertheless, they have a weak positive economic impact, a low correlation with domestic investment, and a high correlation with both inflation and imports. The study also presented an overview of the global network of Lebanese banks and their products and services targeting Lebanese expatriates worldwide. The findings of a comprehensive survey show a considerable gap between supply and potential demand in terms of presence of Lebanese banks in countries hosting large Lebanese Diaspora and in terms of products and services designed for expatriates.

• Item Type: MPRA Paper
• Language: English
• Keywords: Remittances.
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E20 - General; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E61 - Policy Objectives ; Policy Designs and Consistency ; Policy Coordination; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; F - International Economics > F3 - International Finance > F35 - Foreign Aid

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