Abstract
<p>This paper examines the Dutch Disease effects of international migrant remittances by using<br />a vector auto-regression estimation focusing on Nepal and Bangladesh. The reason for<br />targeting two economies is that the differences in their economic performances could shed<br />light on what kinds of mechanisms make the received remittances lead to or not to the Dutch<br />Disease. The study identified the existence of the Dutch Disease in Nepal, but not in<br />Bangladesh, judging from the causalities and dynamic responses from remittances to<br />manufacturing-services ratio. We speculate that the contrast in the Dutch Disease effects<br />might come from the differences in the demand structure and policy efforts for manufacturing<br />development between both economies.</p>
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