This article examines the findings of an analysis of sample survey data on the uses and determinants of remittances among Tongan and Western Samoan households. These surveys were undertaken at both the receiving and remitting ends of the process, and bring forth important evidence that remittances are not used exclusively for consumption purposes and play an important role in contributing to both savings and investment in the migrant sending countries. It also shows that remittances appear not to be driven exclusively by altruistic sentiments and the need for family support, but also, among some migrant categories, by the motivation to invest. There appears to be substantial scope for policy intervention on the part of Pacific island governments to increase the flows of remittances into their economies.
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