| dc.description.abstract | Nowadays, the amounts of remittances in Indonesia have increased dramatically. It is reported that Indonesia received approximately USD9.2 billion of remittances. Remittances refer to money transferred by worker to the home country. Because the significant trend of remittances was sent to migrants’ household immensely, many people can fulfil their basic need and resulting to increased their income and quality of life as well. This study tried to analyse the effects of remittances on economic growth in Indonesia by using an Ordinary Least Square (OLS) method during the period 1983 to 2016. The other variables considered include foreign aid, short-term debt and trade openness. The study found that remittance is significantly affecting economic growth as well as the other variables. All variables positively affect economic growth except trade openness which has negative effect on growth. Thus, to increase economic growth effectively, government needs to evaluate the policy regarding remittance inflows by improving financial institution in both Indonesia. Then, educating the migrants and households to manage remittances efficiently, may result on economic growth. | en_US |
