The impact of remittances on the economy of Ghana- a case study of Merchant Bank Ghana Limited (Merban Moneytransfer)

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There is considerable attention and polices as well as debates surrounding the relative contribution of remittances from migrants to developing an economy in terms of the depth of utilizing and accessing financial services. While there is a large number of migrants using informal means of remitting the cost of remitting seem to be an issue despite the increase in remittances. Academic and institutional research has not consensually admitted the effects of remittances on growth and financial development by increasing deposit mobilization or just encourages brain drain and increase just spending leaving poverty as it is. This paper suggests that certain findings indicate that there is link between remittances, deposit mobilization poverty alleviation and financial development due to correlations established. Workers’ remittances will contribute to longer term poverty allocation and financial deepening when receiving and paying countries control charges and create incentives for using formal channels increase in financial services environment conducive for saving and ultimately investing. Government policies and institutions which receive must develop products and services to encourage migrants to remit, invest in home country while increase household income indirectly helps reduce poverty some of which relatives can save or invest.
A thesis submitted to the KNUST School of Business in partial fulfilment of the requirement for the award of Master of Business Administration degree, 2008