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An analysis of remittance inflows and inflation in a small developing economy of Fiji: an ARDL approach

Chand, Shasnil A. and Singh, Baljeet (2024) An analysis of remittance inflows and inflation in a small developing economy of Fiji: an ARDL approach. International Journal of Economic Development, 17 (2). pp. 46-79. ISSN 1523-9748

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Abstract

Remittance serves as an important lifeline for many developing and emerging economies. Despite its positive role, the surge in remittance inflows in these economies also bring in economic challenges such as inflation. The aim of this study is to investigate the impact of remittances on the Consumer Price Index (headline inflation), and its components including food, alcoholic drinks and tobacco, durable household goods, and clothing and footwear inflation in Fiji. The study applies autoregressive distributed lag (ARDL) bounds testing estimation proposed by Pesaran et. al (2001) and encompasses the sample period 1986-2021. The result suggest that remittances help to mitigate inflation including other components of inflation in Fiji.

Item Type: Journal Article
Subjects: H Social Sciences > HJ Public Finance
Divisions: School of Accounting, Finance and Economics (SAFE)
Depositing User: Ms Shalni Sanjana
Date Deposited: 29 Apr 2025 02:19
Last Modified: 29 Apr 2025 02:19
URI: https://repository.usp.ac.fj/id/eprint/14945

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