Remittances, Institutions and Growth: A Semiparametric Study

Ruiz, Isabel; Shukralla, Elias; Vargas‐Silva, Carlos

doi:10.1080/10168730802696715

Cited by 25 publications

(19 citation statements)

References 15 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Using dynamic panel estimation, they find that remittances exercise a weak positive effect on long-term macroeconomic growth. Ruiz et al (2009) reexamined the relationship between remittances and economic growth, with special attention on the importance of the nonlinearity of this relationship. They show that the relationship between remittances and growth is neither linear nor quadratic, proposing the use of a semiparametric model to avoid misspecification bias from imposing an arbitrary functional form.…”

Section: Impacts Of Remittances On Economic Growthmentioning

confidence: 99%

“…The literature already contains plenty of studies that have associated remittances to business cycle fluctuations of the home and host country (Roache and Gradzka 2007;Sayan 2006;Vargas-Silva 2008), while the impact of remittances on growth has provided mixed results (Catrinescu et al 2009;Chami et al 2005;Giuliano and Ruiz-Arranz 2009;Mundaca 2009;Ruiz et al 2009). The results that we obtained using standard methodologies suggest that remittances can help spur short-term fluctuations in output in Asia.…”

Section: A Remittances and Economic Growthmentioning

confidence: 99%

See 1 more Smart Citation

Remittances in Asia: Implications for the Fight Against Poverty and the Pursuit of Economic Growth

2009

Self Cite

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Series is a forum for stimulating discussion and eliciting feedback on ongoing and recently completed research and policy studies undertaken by the Asian Development Bank (ADB) staff, consultants, or resource persons. The series deals with key economic and development problems, particularly those facing the Asia and Pacific region; as well as conceptual, analytical, or methodological issues relating to project/program economic analysis, and statistical data and measurement. The series aims to enhance the knowledge on Asia's development and policy challenges; strengthen analytical rigor and quality of ADB's country partnership strategies, and its subregional and country operations; and improve the quality and availability of statistical data and development indicators for monitoring development effectiveness. AbstractThis study examines the potential of remittances for promoting economic growth and reducing poverty in Asian countries using data for more than 20 countries in the region for 1988-2007. The results indicate that remittances positively affect home country real gross domestic product (GDP) per capita growth. A 10% increase in remittances as a share of GDP leads to a 0.9-1.2% increase in GDP growth. The findings also show that remittances only have a negligible effect on the overall poverty rate, but they tend to decrease the poverty gap and thereby ameliorate the depth of poverty. The estimates suggest that a 10% increase in remittances decreases the poverty gap by about 0.7-1.4%. The paper also explores the robustness of the key results by using 5-year average data and addresses potential endogeneity issues through instrumental variable estimation.It is also argued that foreign aid is not just a tool for promoting development but it has other objectives as well, such as being a sign of diplomatic approval or a reward to foreign governments for behavior desired by the donor. See Burnside and Dollar (2000) for more on issues related to foreign aid flows.

show abstract

Section: Impacts Of Remittances On Economic Growthmentioning

confidence: 99%

Section: A Remittances and Economic Growthmentioning

confidence: 99%

Remittances in Asia: Implications for the Fight Against Poverty and the Pursuit of Economic Growth

2009

Self Cite

View full text Add to dashboard Cite

show abstract

“…In specifications that do not hold investment constant, the coefficient on remittances is more positive (Faini, ; Fajnzylber and López, ). More recent work excludes investment per se (Barajas et al ., ; Ruiz et al ., ; Rao and Hassan, ) but controls for various country traits that could be either direct determinants of investment or determined by investment, such as financial depth, inflation, fiscal balance, the quality of governance, and FDI. These have the potential to create similar issues of overcontrolling.…”

Section: Prior Explanations For the Lack Of Detected Growth Effectsmentioning

confidence: 99%

Why Don't Remittances Appear to Affect Growth?

Clemens

McKenzie

2018

The Economic Journal

View full text Add to dashboard Cite

While measured remittances by migrant workers have recently soared, macroeconomic studies have difficulty detecting their effect on economic growth. We propose three new explanations for this puzzle. First, a large majority of the recent rise in measured remittances may be illusoryarising from changes in measurement. Second, cross-country regressions may lack power to detect such growth effects. Third, remittances rise primarily with rising emigration, whose opportunity cost to GDP creates endogeneity bias. Migration and remittances clearly have first-order effects on poverty, migrant households' welfare and global GDP but detecting the effect of remittances on economic growth faces important challenges.

show abstract

“…For-example, the studies of Chami et al (2005), Barajas et al (2009), Roa and Hassan (2011) have found negative relationship or no relationship at all between economic growth rates and remittances. Furthermore, the study of Ruiz et al (2009) has found a conflicting result by analyzing the relationship between growth rates and remittances by assuming the relationship between growth and remittances as non-linear rather than linear. They have proved a positive linkage between economic growth and remittances when they assume that contribution of remittances flows to growth linear, but such relationship disappears when non-linearity is taken account.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of Workers’ Remittances on Economic Growth: Panel Data Approach for Selected Country Group

Polat¹

2018

AEF

View full text Add to dashboard Cite

Recent decade has witnessed the growing importance of remittances as a source of foreign income for many developing countries. Thus, as the value of remittances around the world increases, many researchers attempt to analyze the remittances’ effects on economic performance. Yet, real effect of remittances on economic growth rate is still controversial issue in the literature. Therefore, main objective of this study is to analyze the linkage between economic growth rates and remittance inflows into eight largest recipient countries of the global remittances by employing panel data analysis for the period 1990-2015. Our findings reveal that there is no significant relationship between remittances and growth. Yet, the study has empirically proved that growth is positively associated with gross capital formations and GDP per capita while it is negatively related with inflation and openness index.

show abstract

Remittances, Institutions and Growth: A Semiparametric Study

Cited by 25 publications

References 15 publications

Remittances in Asia: Implications for the Fight Against Poverty and the Pursuit of Economic Growth

Remittances in Asia: Implications for the Fight Against Poverty and the Pursuit of Economic Growth

Why Don't Remittances Appear to Affect Growth?

The Impact of Workers’ Remittances on Economic Growth: Panel Data Approach for Selected Country Group

Contact Info

Product

Resources

About