Brown, Richard P.C.
"Hidden Foreign Exchange Flows: Estimating Unofficial Remittances to Tonga and Western Samoa." Vol. 4 (1), p. 35-54, 1995.
This article show sample survey data from both the remitting and receiving ends can be used to derive estimates of total remittances by migrants from Tonga and Western Samoa, including those sent through unofficial channels. Such survey data can provide a wealth of information on the variety of forms and channels of remittances used by migrants, from which it is possible to assess the quantitative and qualitative significance of these hidden international resource flows. Unrecorded remittances are found to constitute a highly significant part of total remittances to these Pacific island countries. It is argued that current account estimates from official balance of payments data in these situations need to be treated with extreme caution, especially in the context of macroeconomic analysis and policy formulation.

Stanwix, Clare and John Connell
"To the Islands: The Remittances of Fijians in Sydney." Vol. 4 (1), p. 69-87, 1995.
Migration of Melanesian Fijians to Sydney has become substantial since the 1980s. Much migration is of individuals, rather than families, and based on individual decisions. Though remittances are not a primary goal of migration, they are considerable and comparable to those of overseas Polynesian communities. Remittances, in goods and money, were usually sent to close kin, especially parents, in accordance with perceptions of needs and were usually mainly for food and clothes. A smaller but still substantial proportion was sent through churches and provincial groups for development projects benefiting communities and wider regions. Social distance, geographical scale, household size and the impact of recession on employment and incomes were critical influences on the volume of remittances.

Walker, Adrian and Richard P.C. Brown
"From Consumption to Savings: Interpreting Tongan and Western Samoan Sample Survey Data on Remittances." Vol. 4 (1), p. 89-115, 1995.
This article examines the findings of an analysis of sample survey data on the uses and determinants of remittances among Tongan and Western Samoan households. These surveys were undertaken at both the receiving and remitting ends of the process, and bring forth important evidence that remittances are not used exclusively for consumption purposes and play an important role in contributing to both savings and investment in the migrant-sending countries. It also shows that remittances appear not to be driven exclusively by altruistic sentiments and the need for family support, but also, among some migrant categories, by the motivation to invest. There appears to be substantial scope for policy intervention on the part of Pacific island governments to increase the flows of remittances into their economies.

Foster, John
"The Relationship between Remittances and Savings in Small Pacific Island States: Some Econometric Evidence." Vol. 4 (1), p. 117-138, 1995.
The relationship between remittances and savings is examined for Tonga and Western Samoa using an econometric modelling approach. Savings deposits of various types held in banks in these countries are modelled and evidence is discovered of a strong relationship with the income level of migrants. Remittances are also found to be interest sensitive. The implications of the results for the "remittance decay" hypothesis are considered and preliminary conclusions are drawn with regard to the feasibility of introducing strategies to increased migrant saving flows into these and other South Pacific countries.

Faeamani, Sione 'U.
"The Impact of Remittances on Rural Development in Tongan Villages." Vol. 4 (1), p. 139-155, 1995.
The extent and use of remittances in four quite different Tongan villages is examined. In three of the villages, they constituted more than 50 percent of all income; in the other, wage employment was important. Remittances play a crucial role in raising consumption and welfare levels. Remittances are primarily sent for religious donations, food purchases and housing amenities, including investment in housing, but a proportion is also invested in the small business sector. Church expenditure also supports village development and remittances directly support village projects.

Ahlburg, Dennis A.
"Migration, Remittances, and the Distribution of Income: Evidence from the Pacific." Vol. 4 (1), p. 157-167, 1995.
This article discusses why it is not surprising that empirical studies of the effect of remittances on the distribution of income sometimes find that remittances increase inequality and sometimes find that they decrease it. As has been shown by Stark, Taylor and Yitzhaki (1986), the impact depends on the share of remittances in total income, the distribution of remittances, and where the recipients of remittances are located in the overall distribution of income. These factors differ across locations over time.

Brown, Richard P.C., John Foster and John Connell
"Remittances, Savings, and Policy Formation in Pacific Island States." Vol. 4 (1), p. 169-185, 1995.
This article brings together the main policy recommendations from the studies reported in this issue. The policy experiences of other Asian migrant-sending countries are reviewed and policy recommendations relevant to Pacific island states discussed. While remittances and loanable funds are found to be sensitive to policies affecting relative real interest rates, doubts are raised regarding the efficacy of policies to channel remittances into domestic investment; migrants do not necessarily make the best entrepreneurs. Instead, loanable funds accumulated from remittances, if not channelled by the migrants or government into projects due to lack of suitable opportunities, could be held as overseas assets denominated in foreign currency, at the best possible rate of return.