Workers' remittances, one of the reliable souces of capital inflows to Ethiopia - Its performance analysis towards shaping the economic growth

Abstract

The internationally migrant workers' income share sent back to home country from the country of employment constitutes a vital portion of capital flows to the home country with multidimensional macroeconomic impacts on the economy. Moreover, Workers' remittances have gained an extraordinary importance in developing countries like Ethiopia. This paper attempts to analyze the role of the workers' remittance as a key component among other capital flows to a country in general and Ethiopia in particular. Further, positive impact of workers' remittances on economic growth in Ethiopia has been examined with the empirical evidences and certain drawbacks in transmission system found which needs rectification by interference of Government's new policy adoption.