This paper empirically examines the factors causing the recently increased flow of workers' remittances to developing countries. The main question we seek to answer is whether these increased remittances are the result of increased amounts sent by existing migrants (intensive margin) or the...

Empirical studies show that there exists a migrant network effect, which boosts foreign direct investment (FDI) from the developed (where migrants work) to developing countries (where migrants come from). We add the migrant network effect in the macro-dynamic framework characterizing a traded...