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Inflow Of Remittances And Private Investment In India

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    (Centre for Development Studies, Thiruvananthapuram 695 011, Kerala, India)

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    Examining the impact of remittances on private investment, the study finds that remittances have an adverse impact on private investment and hence is apprehensive about its net positive impact on output growth in India. Therefore, the study suggests that the government policy should be designed toward inducing private sector to allocate more remittances for investments for leveling up the rate of economic growth. Otherwise, a significant proportion of remittances would result in increase in private consumption without desired contributory impact. The study also observes crowding out impact of public sector investment, while openness measure raises private sector investment.

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    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal The Singapore Economic Review.

    Volume (Year): 57 (2012)
    Issue (Month): 01 ()
    Pages: 1-22

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    Handle: RePEc:wsi:serxxx:v:57:y:2012:i:01:p:1250004-1-1250004-22
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