Red Paper
International Journal of Financial Management and Economics
  • Printed Journal
  • Indexed Journal
  • Refereed Journal
  • Peer Reviewed Journal
E-ISSN: 2617-9229|P-ISSN: 2617-9210
International Journal of Financial Management and Economics
Printed Journal   |   Refereed Journal   |   Peer Reviewed Journal
Peer Reviewed Journal
Vol. 8, Issue 2 (2025)

Determinants of remittance inflows to India: Evidence from the post-reform period


Tarif Hussain and Amiya Sarma

Remittance inflows play a vital role in financing India’s current account deficit, supporting the rupee, and complementing national savings and investment. This study employs the Autoregressive Distributed Lag (ARDL) model using annual data (1993–2023) from the World Development Indicators to analyse the determinants of remittance inflows to India. The bounds test confirms a stable long-run cointegrating relationship among the variables. Results show that rupee depreciation, higher host-country incomes, increased FDI inflows, and greater trade openness significantly boost remittance inflows in the long run. The Error Correction Model (ECM) reveals a high speed of adjustment, with 76% of disequilibrium corrected annually, while trade openness alone influences the short-run remittance inflows. The study concludes that strengthening macroeconomic fundamentals, enhancing financial integration, and protecting migrant interests are crucial for sustaining remittance inflows and ensuring India’s economic growth and stability.

Pages : 1149-1155 | 395 Views | 286 Downloads


International Journal of Financial Management and Economics
How to cite this article:
Tarif Hussain, Amiya Sarma. Determinants of remittance inflows to India: Evidence from the post-reform period. Int J Finance Manage Econ 2025;8(2):1149-1155. DOI: 10.33545/26179210.2025.v8.i2.662
close Journals List Click Here Other Journals Other Journals
International Journal of Financial Management and Economics
Call for book chapter