Policies for attracting remittance inflows through formal channels

Abstract

It is undeniable that remittances play a vital role in developing countries such as Vietnam. This capital is considered
an important source to offset the current account deficit as well as a considerable source of foreign currency for
the economic advancement. This source of foreign finance is mobilized from citizen, thus, it is more stable than
other financial sources such as aid or foreign loans (Carling, J 2005; Ratha, D 2005). Therefore, how to attract
and efficiently use remittances are of concern to a number of researchers and policymakers. In this article, the
authors will study the remittance channels and analyse the factors that impact the flows of remittances. The article
will also focus on examining policies to attract remittances through formal channels, which contribute to economic
and social development.