Remittances, development level, and long-run economic growth

Artikel

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Economies ; ISSN: 2227-7099 ; Volume: 4 ; Year: 2016 ; Issue: 4 ; Pages: 1-20 ; Basel: MDPI

Classification and Topics

• Classification: Wirtschaft ; Remittances ; Economic Growth of Open Economies ; Macroeconomic Analyses of Economic Development
• Subject: remittances ; long-run economic growth ; development level

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Matuzeviciute, Kristina ; Butkus, Mindaugas
• Event: Veröffentlichung
• (who): MDPI
• (where): Basel
• (when): 2016

Further information

• DOI: doi:10.3390/economies4040028
• Handle: http://hdl.handle.net/10419/167757
• Last update: 10.03.2025, 11:43 AM CET