This paper uses an input-output model to examine the direct and indirect effects of remittances on production, consumption, imports and employment in Greece in 1971. It finds that remittances generate a multiplier effect of 1.7 on total gross output, with the highest multiplier effects being in the apparel, machinery and construction industries. With respect to employment, remittances generate about 74,000 new jobs in the nonagricultural sector. Remittances also lead to a rise in imported goods, but these imports represent only 5 percent of total Greek imports. On this basis, the paper emphasizes that remittances leakages to imports do not have a major impact on the trade deficit.

©1993 University of Chicago Press