Global remittances and their impact on economic growth

Over the last decades, global remittances have been experiencing an exponential increase becoming one of the major international flows, currently reaching hundreds of billions of dollars. For numerous developing countries, remittance inflows account for the largest source of foreign income, frequently constituting a significant portion of the receiving countries’ GDP, while also potentially achieving a significant economic impact on the receiving economies. The aim of this thesis is to generally present the issue of remittances and to describe their impact on economy and economic growth. As the specific economic implications are still a subject of academic discussion without reaching a united conclusion, I provide the reader with general opinions on the remittances’ impact on macroeconomic indicators and economic growth. Additionally, I investigate the relationship between remittances and the key macroeconomic variables on the case of the Philippines over the period of 1980 – 2017.