The literature on remittances and growth has thus far established a positive link between remittances and overall economic growth in recipient countries using standard growth regressions. In this paper, we identify the main transmission channel through which remittance transfers seem to exert...

After a short-lived slowdown in the immediate aftermath of the global financial crisis and a swift rebound, emerging markets (EM) are now entering a period of slower growth. In fact, growth is now lower than the post-crisis peak of 2010-11, as well as the rates seen in the decade before the...