The extent to which remittances affect the economic development of the Philippines

This report will investigate the relationship between remittances and economic growth in the Philippines, both theoretically and empirically using GDP per capita and Remittance data. This is an important topic because global remittance flows have been rising exponentially, from US$339m in 1977 to US$228bn in 2014 1, triple that of foreign aid inflows. The Philippines in particularly is the case study for this report because of the increasing diaspora of Filipinos, which currently stands at ten million2 and the large volumes of remittance inflows, which constitute 9.8% of the country’s GDP