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How is remittance related to prices and output? New evidence from Fiji’s data

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  • Narayan, Paresh Kumar
  • Narayan, Seema
  • Prasad, Biman
  • Manoa, Savaira

Abstract

This article uses a dynamic macroeconomic model to analyze how remittances affect Fijian prices and output. We find that remittance growth enhances price factor growth and decreases inflation using time-series data. Remittance increase also hurts output factor growth, which has major economic effects. Due to Fiji's particular reliance on remittances, single-country analysis is needed to explain macroeconomic dynamics. We integrate remittances into a business cycle framework and simulate their effects on prices and output to add to the research and inform fiscal and monetary policy in remittance-dependent nations.

Suggested Citation

  • Narayan, Paresh Kumar & Narayan, Seema & Prasad, Biman & Manoa, Savaira, 2025. "How is remittance related to prices and output? New evidence from Fiji’s data," Journal of Asian Economics, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:asieco:v:98:y:2025:i:c:s1049007825000302
    DOI: 10.1016/j.asieco.2025.101906
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