Advanced Search
MyIDEAS: Login to save this paper or follow this series

Kerala's Gulf connection: Emigration, remittances and their macroeconomic impact 1972-2000

Contents:

Author Info

  • K.P. Kannan

    (Centre for Development Studies)

  • K.S. Hari

    (Centre for Development Studies)

Registered author(s):

    Abstract

    This paper attempts to construct a time series estimation of remittances from abroad to the Kerala economy for the period 1972 to 2000. It is now widely acknowledged that foreign remittances in the economy of the State of Kerala in India in the form of money sent by its workers in the Gulf countries play a crucial role. The study finds that by the early nineties remittances to the Kerala economy assumed a significant share of state income. This ranged from 17 percent during 1991-92 and 24 percent during 1997-98 with an average of 22 percent for the second half of the nineties. The liberalisation of the Indian economic policies, particularly the foreign exchange rate, benefited Kerala directly. Adding the remittance income to the Net State Domestic Product, a Modified State Income series has been constructed. As a result Kerala's per capita income not only caught up with the average per capita income for India but started exceeding it reaching 49 percent above the national average by the end of the nineties. This tallies with per capita consumer expenditure in Kerala, which was in excess of 41 percent above the national average by the end of the nineties. Remittances have also made significant impact on savings. By the nineties savings rates in the Kerala economy seem to have reached such high levels comparable to the East and South East Asian countries. The significance of remittances can also be gauged by its relative magnitudes. By the end of the nineties remittances reached such levels that they were well above the total government expenditure, value added in manufacturing and even the value added in industrial sector as a whole.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.cds.edu/wp-content/uploads/2012/10/wp328.pdf
    Our checks indicate that this address may not be valid because: 404 Not Found. If this is indeed the case, please notify (Shamprasad M. Pujar)
    Download Restriction: no

    Bibliographic Info

    Paper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 328.

    as in new window
    Length: 45 pages
    Date of creation: Mar 2002
    Date of revision:
    Handle: RePEc:ind:cdswpp:328

    Contact details of provider:
    Postal: Peasanth Nagar, Trivandrum 695 011, Kerala
    Phone: +91 471 2448 881
    Fax: +91 471 2447 137
    Email:
    Web page: http://www.cds.edu
    More information through EDIRC

    Related research

    Keywords: emigration; Gulf countries; Kerala economy; remittances; consumption;

    Find related papers by JEL classification:

    This paper has been announced in the following NEP Reports:

    References

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. K.C. Zachariah & P.R. Gopinathan Nair & S. Irudaya Rajan, 2001. "Return emigrants in Kerala: Rehabilitation problems and development potential," Centre for Development Studies, Trivendrum Working Papers 319, Centre for Development Studies, Trivendrum, India.
    2. K.K. Subrahmanian & E. Abdul Azeez, 2000. "Industrial growth in Kerala: Trends and explanations," Centre for Development Studies, Trivendrum Working Papers 310, Centre for Development Studies, Trivendrum, India.
    Full references (including those not matched with items on IDEAS)

    Citations

    Lists

    This item is featured on the following reading lists or Wikipedia pages:
    1. Economy of Kerala in Wikipedia English ne '')
    2. User:Saleem mp/sandbox in Wikipedia English ne '')
    3. Kerala in Wikipedia English ne '')

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ind:cdswpp:328. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamprasad M. Pujar).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.