Remittances, an inextricable facet of migration, are the money that the diaspora sends to familyrnremaining in the country of origin. The very importance of remittances together with the contributions ofrnthe diasporas is grabbing the minds of policy makers in an effort to increase foreign incomes for thernenhancement of economic development. However, there are different microeconomic factorsrnInfluencing the flows of remittances from both the senders' and recipients' side which this thesis hasrnmade detail studies using econometric model.rnFrom the sender's side the age, educational level and income of the remitter, the number of years therndiaspora stay abroad, the channel used to send remittances and blood relationship of the sender andrnrecipients are major determinants for the amount and frequency of remittances. on the other hand, therngender and the reason for spending remittances do not have significant influence.rnFrom the recipient's side the country from which the remittances come, the living status of the remitter,rnthe income, the number of years the diaspora stay abroad and the sending channel are determiningrnfactors. The family size and income of the recipient household also influence the inflow of remittances.rnThese illustrations convey the message that in order to multiply the inflow of remittances, particularlyrnthrough the formal channel, the factors should be given prior attention and appropriate measuresrnshould be taken in connection to the determinants. The secure flow of resources needs to be assuredrntogether with carefully increasing the number of migrants.