Remittances and Savings in Asia: Some Empirical Evidence Based on the Life-Cycle Model

This study empirically examines the effect of remittances on private real savings for a sample of Asian economies using cross-country time-series data. Our findings consistently show that remittance inflows in Asian countries are positively and statistically significantly correlated with their private real savings. Our findings also reveal economic growth, real deposit interest rate and credit provided by the banking sector as other significant determinants of private real savings. Some policy implications are drawn.