Private Remittances Flow to India: Do the United States' Macroeconomic Fundamentals Matter? A NARDL Analysis.

Migration and private remittances have been continuously increasing over the years. For many developing countries, the quantum of remittances is greater than other forms of capital, such as FDI, FII, etc. The remittances may be used to fill the gap in potential funding sources for economic development in emerging countries like India. Migrations from India to the United States (US) and the flow of remittances to India have been continuously increasing over the years. The paper studies the macroeconomic factors influencing remittances to India. The study employs ARDL technique to identify the macroeconomic factors such as GDP, term premium, CPI, etc. of US, in addition to the domestic factors of India and price of Brent and other commodities such as gold, silver, and platinum that influence the flow of remittances to India. Further, the study also employs NARDL techniques to identify the asymmetric impact of macroeconomic variables in US on remittance flows to India. CDM technique is also used to decipher the shock evolution of independent variables with regard to remittance flows to India. [ABSTRACT FROM AUTHOR]