![Sample our Area Studies journals, sign in here to start your access, latest two full volumes FREE to you for 14 days]({"type":"image" , "src" : "/sda/5922/TOC-Subject-Sample-2021-Area-Studies.jpg"})
ABSTRACT
In recent years, increased economic integration and enhanced labor mobility has led to an increasing flow of remittances across the globe. Many scholars over time have explored its positive contributions, while few have investigated its consequences on the recipient economies. A subsequent appreciation of the local currency due to remittances is known as the ‘Dutch disease’ effect. In this paper, we examine the validity of the ‘Dutch disease’ effect in the context of Fiji and find that remittances do not result in the Dutch disease effect in the long run.
Disclosure statement
No potential conflict of interest was reported by the authors.
Notes
1. See, for example, RBF (Citation2005), PFTAC (Citation2010) and Peiris and Ding (Citation2012).
2. Fiji's currency has been devalued in 1987, 1998 and in 2009.
3. The 95% confidence interval for the regression coefficient estimate is between –0.021 and 0.073.
4. A bivariate error-correction model has been used to explain the effect of remittances on the real effective exchange rate over the 1990–2003 periods in Fiji. The results show that the increase in remittances causes significant appreciation of Fiji's exchange rate in the long run. Results are available on request from the authors.
Additional information
Notes on contributors
Kushneel Avneet Prakash
Kushneel Avneet Prakash is a teaching assistant in the School of Economics at The University of the South Pacific. His research interests include international trade, economics growth, development economics, monetary economics, macroeconomics. His most recent publication is ‘The Debt experience of SIDS in the Pacific’ (2014) in Debt and Development in Small Island Developing States (with Biman Chand Prasad).
Anjani Mala
Anjani Mala is an assistant lecturer in the School of Economics, Banking & Finance at Fiji National University. Her research interests are trade, public finance and economic growth. Her most recent article is ‘The nature and concept of accountability: a case study of three entities in Fiji‘ (2015) Global journal of business research.