How foreign aid and remittances affect poverty in MENA countries?

Khan, Riyazuddin; Zeeshan,; Haque, Mohammad Imdadul; Gupta, Neha; Tausif, Mohammad Rumzi; Kaushik, Isha

doi:10.1371/journal.pone.0261510

Cited by 10 publications

(6 citation statements)

References 66 publications

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“…The results of this study concluded that foreign aid and the human capital development through foreign aid has positive influence and contributes to the reduction of poverty in the Middle East and North African (MENA) Region. Khan et al, (2022) due to the rise in labour immigration and significant amount of foreign aid, researched on the relationship between economic growth, inequality, poverty, remittances, and foreign aid in the Middle East and North Africa (MENA) region. The aim of this study was to examine the relationship between economic growth, poverty, inequality, remittances, and foreign aid in the Middle East and North Africa (MENA).…”

Section: Empirical Reviewmentioning

confidence: 99%

“…Therefore one may say that it is proponent believed that, foreign aid has positive effects and helps the developing economies by minimizing the investments and saving gap to achieve economic growth. Normally, foreign aid is expected to enhance economic welfare and support economic growth, however, its effectiveness toward the economic growth is questionable and debatable (Khan et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

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The impact of foreign aids on poverty reduction: an international literature review

KASSIM¹,

Fırat²

2022

Pressacademia

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Purpose- Lately after the occurrence of the Covid-19, there has been a substantial wave of the foreign aid funds from developed to developing economies aimed to back up the most effected countries. The concept of the foreign aids with the primary goal to eradicate poverty is not new to economy and social development scholars since it has been researched for decades. Methodology- The poverty eradication was adopted from what so called the Millennium Development goal (1990-2015) and Sustainable development goal that is expected to come to an end in 2030. This study qualitatively accesses the impact and the effectiveness of the foreign aid given to most developing countries with the aim to eradicate the poverty level. Findings- The main objective of this paper is having an empirical conclusion on the effectiveness of the foreign aid through the critical empirical reviews of the both quantitative and qualitative works done by different scholars in different countries. Conclusion- The study concluded that quantitatively it is illogical to conclude weather the foreign aid really contributes to poverty reduction in recipient’s country or not. This backed up by the presence of both empirical studies both in favour and against of foreign aids. The study further revealed that the effectiveness of the foreign aid toward eradication of poverty depend on many factors on both recipients’ and donor countries. Those factors include conditions attached to aids, allocation of the aids to targeted areas, authority of the states in decision making related to foreign aid and political influence. Finally, the study suggested that for efficient use the foreign aids countries should have a clear stipulated goals and area of prioritization. The countries also should have a clear monitoring mechanism to supervise the progress of the funds expenditure over time Keywords: International review, foreign aid, millennium development goals, poverty reduction, qualitative analysis. JEL Codes: F35, I30, I32

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Section: Empirical Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The impact of foreign aids on poverty reduction: an international literature review

KASSIM¹,

Fırat²

2022

Pressacademia

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“…The different base models, approaches to measuring remittance inflows and economic growth as well as different geographical regions around the globe are likely causes of why there are so many significant differences between how remittance inflows impact economic growth. Broadly, the literature examined can be subdivided into three separate categories: 1. the authors who believe that remittances inadvertently hamper economic growth [5,6,17,18], 2. the authors who believe that remittances help promote economic growth and alleviate poverty [7,19], 3. authors who find no statistically significant relationship between remittances and economic growth or find that the impact of remittance inflows may be different across different regions or countries [9,20,21].…”

Section: Literature Reviewmentioning

confidence: 99%

“…The impact of remittances in Croatia was for example also examined [20]. It was concluded that remittance inflows had a favourable impact on the economy.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Remittance Inflows on Selected South-East European Economies: A Panel Auto-Regressive Distributed Lag Approach

Kokotović¹,

Kurečić²

2022

Interdisciplinary Description of Complex Systems

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The impact of remittance inflows on economic development is contested in the existing literature. This article applies a panel auto regressive distributed lag to examine the impact of remittance inflows on economic growth and self-employment percentage in a panel of seven Southeast European countries between 1996 and 2020. The countries included in the panel are characterized by higher remittance inflows and include Albania, Bosnia and Hercegovina, Croatia, Kosovo, Montenegro, North Macedonia, and Serbia. The findings of the article indicate that there is no short-run relationship between remittance inflows and economic growth, but that remittance inflows are a significant contributor to economic growth in the long run. The article finds that in the short run, remittance inflows actually decrease the self-employment rate which can be attributed to the poverty alleviation impact of remittance flows, while there is no statistically significant relationship between remittance inflows and the self-employment rate in the long-run. This indicates that there are opportunities to utilize the significant remittance inflows in more meaningful ways to stimulate investment opportunities.

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“…Pekovic (2017) empirically investigated that in case of selected transitional economies whenever remittances increase by 10% poverty head count will decline by 4.7 %. Similarly, Khan et al (2022) have examined how much poverty is reduced as a result of change in foreign aid and remittances. They have employed balanced panel data set of 25 Middle East and North African (MENA) countries.…”

Section: Literature Reviewmentioning

confidence: 99%

Remittances and their Impact on Poverty: An Empirical Study of Developing Countries Using ARDL

Noureen¹,

Hasan²,

Zahra³

2022

Forman J. econ. stud.

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The primary goal of this research is to investigate the link between remittances and poverty using a panel data set of developing countries from 1990 to 2020. Empirical findings of ARDL model suggests that an increase in remittances reduce poverty, which suggests that remittances can enhance the living standard of the poor. In developing countries the migration of labour is a good sign of poverty reduction. Financial development is significant and positively related to poverty reduction so there is a need of policies that promote ease for migrants and pro poor financial development is required. This work will contribute to examining dynamics between remittances and poverty using the data of selected developing countries.

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How foreign aid and remittances affect poverty in MENA countries?

Cited by 10 publications

References 66 publications

The impact of foreign aids on poverty reduction: an international literature review

The impact of foreign aids on poverty reduction: an international literature review

Impact of Remittance Inflows on Selected South-East European Economies: A Panel Auto-Regressive Distributed Lag Approach

Remittances and their Impact on Poverty: An Empirical Study of Developing Countries Using ARDL

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