Financing Growth: Comparing the Effects of Fdi, Oda, and International Remittances

Benmamoun, Mamoun; Lehnert, Kevin

doi:10.35866/caujed.2013.38.2.002

Cited by 32 publications

(21 citation statements)

References 52 publications

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“…The remittance inflow received considerable attention during the late 1970s and early 1980s, due to the large increase in national and international migration from developing countries toward developed and oil‐rich Middle Eastern economies. Since then policymakers and researchers have started paying due attention to the importance of remittances for economic growth in developing and least developed countries, resulting considerably large theoretical and empirical literature which can lead to an inconclusive conclusion, (Ratha, ; Barajas et al, ; Fayissa and Nsiah, ; Cooray, ; Siddique et al, ; Benmamoun and Lehnert, ).…”

Section: Survey Of Literaturementioning

confidence: 99%

Workers’ Remittances and Domestic Investment in South Asia: A Comparative Econometric Inquiry

Abbas

2019

International Migration

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This study explores the effect of workers’ remittances on domestic investment in four selected South Asian countries: Bangladesh, India, Pakistan, and Sri Lanka, using contemporary time series estimation techniques from 1980 to 2017. The estimated results of the ARDL bounds approach to cointegration analysis have revealed that among selected South Asian countries, Pakistan has witnessed a significant negative effect in the long run. Similarly, the findings of other forms of capital flows also revealed varying effects across the countries considered. This study urges the transformation of aggregate economic behaviour from consumption to the production side, by adopting policies that would encourage domestic saving and investment activities. In this regard, among others, reduction in the interest rate and the interest rate spread would be beneficial. It urges the identification of factors that conditions varying effect of workers’ remittances and other capital inflows to mitigate negative effects into positive.

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Section: Survey Of Literaturementioning

confidence: 99%

Workers’ Remittances and Domestic Investment in South Asia: A Comparative Econometric Inquiry

Abbas

2019

International Migration

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“…Since the early 1980s, policymakers and the scholarly community have paid attention to the role of remittances in the economic growth of developing countries, which gave rise to an extensive body of literature on it, although the evidence remains inconclusive (e.g. Barajas et al ., ; Catrinescu, ; Fayissa & Nsiah, ; Nyamongo et al ., 2012; Benmamoun & Lehnert, ; Lartey, ; and Ratha, ; Chami & FullenKamp, ). Despite the recognition that investment is one of the key channels through which remittances is expected to influence economic growth, far fewer empirical studies have systematically examined the remittance–investment link.…”

Section: Review Of the Literaturementioning

confidence: 99%

The Effect of Remittances on Domestic Capital Formation in Select African Countries: A Comparative Empirical Analysis

Yiheyis

Woldemariam

2015

J of Intl Development

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Remittances are expected to affect domestic investment, among others, through induced rise in savings and easing of financial constraints. However, the empirical evidence on the relationship between the two variables is rather thin, especially in the context of Africa. This study investigates the short-run and long-run effects of remittances on domestic investment in four African countries using the bounds testing approach to cointegration analysis. The findings of the study indicate that whether remittances spur domestic capital formation varies by country and the time horizon considered, highlighting, among others, the importance of identifying the factors that tend to condition their relationship.

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“…Theoretically and empirically TRADE is expected to have a positive impact on GDP and foreign exchange rates, depending upon the degree of imports (Benmamoun & Lehnert, 2013). Several studies use trade openness in this regard.…”

Section: Volume Of Trade (Trade)mentioning

confidence: 99%

“…As a measure of the quality of governance in a country, the study predicts that a high score in governance positively impacts the level of economic output (Borensztein et al, 1998;Benmamoun & Lehnert, 2013).…”

Section: Governance (Govn)mentioning

confidence: 99%

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Impacts of FDI and Remittance Inflows in Developing Asia: A Comparative Dynamic Panel Study

Sinha

Tirtosuharto

Sengupta

2019

J of App Econs and Policy

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The paper explores the macroeconomic impacts of foreign direct investment (FDI) and remittance inflows in developing Asia. Asian developing economies are identified as the highest receiver of remittances and the region has also been consistently performing well in receiving of FDI inflows. As an external source of capital formation, inflows of FDI and remittances affect foreign exchange rates and output. This study provides empirical evidence on the impact of FDI and remittances on real effective exchange rates and GDP in Asian developing countries using data over the period of 1981-2015. Dynamic panel GMM technique is employed to overcome the endogeneity issue. Findings imply that both inflows of FDI and remittances have positive and significant impacts on exchange rates and GDP in developing Asia. Hence, remittances carry greater influence and significant impacts due to relatively stable inflows.

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Financing Growth: Comparing the Effects of Fdi, Oda, and International Remittances

Cited by 32 publications

References 52 publications

Workers’ Remittances and Domestic Investment in South Asia: A Comparative Econometric Inquiry

Workers’ Remittances and Domestic Investment in South Asia: A Comparative Econometric Inquiry

The Effect of Remittances on Domestic Capital Formation in Select African Countries: A Comparative Empirical Analysis

Impacts of FDI and Remittance Inflows in Developing Asia: A Comparative Dynamic Panel Study

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