The effect of the Lebanese diaspora remittances on the growth of the overall economy

Abstract

Money transferred by Lebanese immigrants represents a significant percentage of total deposits at banks of GDP. There is therefore a need to study the effect of these remittances. The aim of the thesis is to assess the effect and contribution of the international Lebanese Diaspora on the Lebanese economy. Primary and secondary data were analyzed to back up the argument that there is misuse of remittances, and that corrective actions are required. The study found that the highest relation is between remittances flow and private sector deposits and the weakest relation is between remittances and consumption; although that 70% of the Lebanese economy is built on consumption. In addition, the survey that was conducted demonstrated that the biggest deployment of money transfers to the country is in deposits and saving accounts in local banks (62.7%). The lowest deployment, on the other hand, is in business entrepreneurship (7.8%). Evidence was found that remittances are not fueling growth in the Lebanese economy.