The Impact of Migrant Remittances on Economic Growth: Evidence from South Asia

Cooray, Arusha

doi:10.1111/roie.12008

Cited by 96 publications

(73 citation statements)

References 32 publications

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“…These regions receive high remittance inflows (% of GDP) with 6.10% in MENA, and 5.12% in SA, whereas these were only 2.93% in EAP, 3.69% in LAC, and 2.89% in SSA on average in the period 1992-2016. These results are in line with Mim and Ali (2012) for MENA over the period 1980, Cooray (2012 for SA over the period 1970-2008. High remittance flows into these regions largely fuel investments in both physical and human capital and financial sector development that serve as pillars for economic growth.…”

Section: Remittancessupporting

confidence: 91%

Remittances, Dutch Disease, and Manufacturing Growth in Developing Economies

Daway-Ducanes

2018

Scottish J Political Eco

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Remittances have grown tremendously in magnitude and economic importance in the past four decades, providing economies with additional disposable incomes and even serving as buffers against economic downturns. It is thus but fitting to ask how remittances have impacted on growth, particularly on manufacturing growth. This note presents a simple model linking remittances and manufacturing growth via a ‘Dutch Disease’ channel. Using Blundell and Bond's (1998) system general method of moments on a panel dataset of 56 developing economies from 1992 to 2016, we verify that remittances adversely affect manufacturing growth in economies that experience high real appreciation rates. This result is robust to alternate specifications, such as the inclusion of financial development indicators, the expansion of the sample to include high‐income economies, and the use of different sample periods.

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Section: Remittancessupporting

confidence: 91%

Remittances, Dutch Disease, and Manufacturing Growth in Developing Economies

Daway-Ducanes

2018

Scottish J Political Eco

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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%

“…The growth effect of worker remittances has been subjected to numerous empirical analysis that leads to an inconclusive conclusion. Cooray () investigated and found significant positive effect of workers’ remittances on domestic economic growth in South Asia through education and financial sector development. Azam and Raza () noted diversion towards human development and found a significant positive effect.…”

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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“…Barajas et al [17], Chamiet al [14], IMF [16], and Kasnauskienė and Buzytė [52] find a zero or negative relation between remittances and long-run economic growth. Faini [53,54], Catrinescu et al [55], Giuliano, Arranz [21], Jongwanich [9], Pradhan et al [12], Cooray [56], and Lartey et al [57] find a positive effect, while other studies find that the impact varies according to a country's educational attainment, financial market depth, and quality of institutions [21,58,59]. Glytsos [60,61] finds that remittances have an asymmetric impact on economic growth.…”

Section: Literature Reviewmentioning

confidence: 99%

Remittances, Development Level, and Long-Run Economic Growth

Matuzevičiūtė

Butkus

2016

Economies

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This paper seeks to enrich the field of research on the topic of the impact of remittances on long-run economic growth. Using an unbalanced panel data covering a sample of 116 countries with different development levels over the period 1990-2014, we studied the interaction between remittances and the level of economic development, as well as its impact on long-run economic growth-because the impact of remittances could be influenced by the development level of the receiving countries. In parallel, we explored the hypothesis about diminishing a country's capacity to use remittances for promoting long-run economic growth as the abundance of remittances increases. To control the endogeneity while estimating the impact of remittances on long-run economic growth, we used OLS (ordinary least squares) with FD (first differences) transformation and FE (fixed effects) approaches and other controls of long-run growth. Our results showed that in general remittances have a positive impact on long-run economic growth, but the impact differs based on the country's economic development level and the abundance of remittances in the economy.

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The Impact of Migrant Remittances on Economic Growth: Evidence from South Asia

Cited by 96 publications

References 32 publications

Remittances, Dutch Disease, and Manufacturing Growth in Developing Economies

Remittances, Dutch Disease, and Manufacturing Growth in Developing Economies

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

Remittances, Development Level, and Long-Run Economic Growth

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