Literature Review Essay

LITERATURE REVIEW

        Foreign workers remittances can be defined as the transfer of money made by the migrants to their home countries. Workers’ remittances are an important financial inflow for many developing countries. According to the World Bank, Singapore has absorbed 57 percent of Malaysia’s overseas citizens, with almost 90 percent of those crossing the border ethnic Chinese. We see such issue as imperative because we expect the increases of Malaysians workers in Singapore will lead to the increase in remittances inflow in Malaysia as well. Theodore P. Lianos (1997) said that the number of migrants in a country affects directly the volume of remittances from the country. While, the main purpose of this paper is to investigate the factors that affect the remittances inflow in Malaysia respect to economy situations in Singapore.
       
        According to Hannah Huidan Lin (2011) about the Determinants of Remittances: Evidence from Tonga, the paper is analyzes the determinants of remittances to Tonga, and gauges whether remittance inflows have a significant impact on the Tongan real effective exchange rate. The results indicate that macroeconomic conditions in remitting countries and exchange rate fluctuations influence remittances. Remittances growth falls with an appreciating currency of Tonga, but increases with higher real GDP growth and lower unemployment rate in remitting countries. The result shows that, 1-percentage-point increase in real GDP growth in remitting countries is associated with a 4-percentage-points increase in remittances growth. Real GDP growth captures the potential capacity of expatriates for sending money back to Tonga. Stronger growth in remitting countries can also be expected to boost the demand for migrant workers further improving the prospects for remittances and 1-percentage-point increase in the unemployment rate in remitting countries is associated with a 1-percentage-point decrease in remittances growth....