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Economic Impact of Remittances: Does it matter how they are sent?

Amjad, Rashid and Siddiqui, Rizwana (2014): Economic Impact of Remittances: Does it matter how they are sent?

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Abstract

Economic Impact of Remittances: Does it matter how they are sent?

Rashid Amjad and Rizwana Siddiqui

ABSTRACT

Remittances by the Pakistani diaspora abroad have had a far reaching impact on the economy and indeed the broader socio-economic milieu. Studies on the impact of remittances have not differentiated between the impact of flow of remittances through formal and informal channels. The question posed in this paper is whether remittances through informal channels have a greater impact on domestic consumption and identifies conditions under which this impact is greater when sent through formal channel.

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