Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/102076
Authors: 
Medalla, Felipe M.
Fabella, Raul V.
de Dios, Emmanuel S.
Year of Publication: 
2014
Series/Report no.: 
Discussion Paper, School of Economics, University of the Philippines 2014-11
Abstract: 
This paper discusses the causes and consequences of the current trend in which a principal driver of growth is inward remittances by workers deployed overseas. The main benefit of the phenomenon is an easing of the fiscal burden arising from the effectively large transfer from workers to the government. On the other hand, the "Dutch Disease" it causes takes a longterm toll on the tradables sector. The paper concludes that the fiscal payoffs from the phenomenon are best used by reinvesting these in the foundations of domestic competitiveness - particularly education and focused infrastructure - to offset the worst effects of the trend and prepare prudently for the time it ends or reverses.
Subjects: 
pine economy
labour migration
migrant remittances
remittances-driven economy
services sector
exchange rate
Dutch Disease
"divide-by- N" syndrome
transport infrastructure
political infrastructure cycle
political institutions
JEL: 
B52
F22
F24
O24
O53
R42
Document Type: 
Working Paper

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