The large and stable inflow of workers' remittances through formal financial channels to developing countries prompted authorities to harness fiscal resources from this flow. This paper develops a macro-dynamic model of a small open economy with cross-border labor mobility emphasizing fiscal...

Many developing countries in need of foreign capital for development have implemented policies to attract foreign direct investment. At the same time, these countries attracted by the foreign currency earnings brought back by migrant workers in the form of remittances are promoting overseas...