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International Research Journal of Management and Commerce (IRJMC) ISSN: (2348-9766)
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International Research Journal of Management and Commerce
Vol. 4, Issue 4, April 2017 Impact Factor- 5.564
ISSN: (2348-9766)
© Associated Asia Research Foundation (AARF)
Website: www.aarf.asia Email : editor@aarf.asia , editoraarf@gmail.com
INVESTMENT ORIENTATION OF MIGRANT REMITTANCES:
EVIDENCE FROM KERALA
Veena Varma
Research Scholar, Department of Commerce, Bharathiar University, Coimbatore, India.
&
Dr. Tomy Mathew,
Professor and Head, Department of Commerce, CMS College, Kottayam, India.
ABSTRACT
International migration and the resulting inflow of remittances have, without doubt,
increased the economic status of migrant households in Kerala. But, have the state been able
to boost investment oriented remittances sufficiently to influence the development interest of
Kerala? The lopsided growth pattern suggests otherwise. The paper seeks to test this
hypothesis by a descriptive analysis of data. The study finds that the impact of remittances is
not reflected in the productive sectors of economy as the investment pattern of migrant
remittances is not in tune with the larger development interest of the state.
Key words: Remittances, Development, Growth, Consumption expenditure, Savings and
Investment
1. Introduction
In many developing countries, international remittances are an important source of income
for millions of families and of foreign exchange earnings. This holds true for India where
workers' remittances have remained an almost stable and reliable source of external financing
over the last three decades. Amidst the slower growth pace of remittances to developing
countries, India remained the World's largest remittance recipient in 2015, attracting about $
69 billion in remittances, according to World Bank's annual report (World Bank, 2016).
Within India, Kerala traditionally holds the leading position among the Indian states
receiving remittances. Kerala's heavy reliance on migrant remittances is underlined by the