Remittances and Dutch Disease in the Eurozone

Abstract: This thesis analysis the connection between remittances and economic growth in the Eurozone. The purpose is to control for remittances impact on GDP growth in absence of Dutch Disease to see if current theory holds. In remittance-research it is assumed that the lack of transmission between the positive micro-economic impact and economic growth is much due to disruptive real exchange appreciation known as Dutch Disease. The Eurozone is not exposed to such effects as the economies share a currency and are part of a trade union. The thesis finds no significant effects on GDP growth from remittances and draws two conclusions; either Dutch Disease effects are not as substantial as currently assumed, or other disruptive variables are much more prominent in the Eurozone.