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Pre-financing Migrant Remittance Flows in Support of Agricultural Development in Africa


  • Lamon Rutten


  • Okey Oramah

    (African Export-Import Bank)


This paper discusses how migrant remittances (which are of large importance to many developing countries) can be used not only as a source of earnings, but also as a tool to generate low-cost finance (at terms better than those imposed by the country's sovereign rating). A concrete structured financing based on migrant remittances into Ghana is described in detail.

Suggested Citation

  • Lamon Rutten & Okey Oramah, 2003. "Pre-financing Migrant Remittance Flows in Support of Agricultural Development in Africa," International Finance 0301001, EconWPA.
  • Handle: RePEc:wpa:wuwpif:0301001
    Note: Type of Document - pdf; pages: 12; figures: included. pdf file

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    References listed on IDEAS

    1. Franz Hamann, 2002. "Sovereign Risk and Macroeconomic Fluctuations," BORRADORES DE ECONOMIA 003520, BANCO DE LA REPÚBLICA.
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    5. S. Rao Aiyagari, 1994. "Uninsured Idiosyncratic Risk and Aggregate Saving," The Quarterly Journal of Economics, Oxford University Press, vol. 109(3), pages 659-684.
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    8. Jonathan Eaton & Mark Gersovitz, 1981. "Debt with Potential Repudiation: Theoretical and Empirical Analysis," Review of Economic Studies, Oxford University Press, vol. 48(2), pages 289-309.
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    11. Correia, Isabel & Neves, Joao C. & Rebelo, Sergio, 1995. "Business cycles in a small open economy," European Economic Review, Elsevier, vol. 39(6), pages 1089-1113, June.
    12. Mendoza, Enrique G, 1991. "Real Business Cycles in a Small Open Economy," American Economic Review, American Economic Association, vol. 81(4), pages 797-818, September.
    13. Cristina Arellano & Enrique G. Mendoza, 2002. "Credit Frictions and "Sudden Stop" in Small Open Economies: An Equilibrium Business Cycle Framework for Emerging Markets Crises," IDB Publications (Working Papers) 1440, Inter-American Development Bank.
    14. Huggett, Mark, 1993. "The risk-free rate in heterogeneous-agent incomplete-insurance economies," Journal of Economic Dynamics and Control, Elsevier, vol. 17(5-6), pages 953-969.
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    More about this item


    migrant remittances structured finance agricultural finance Ghana;

    JEL classification:

    • F30 - International Economics - - International Finance - - - General
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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