Rao, B.Bhaskara and Hassan, Gazi (2009): A panel data analysis of the growth effects of remittances.
Download (99kB) | Preview
Many development economists believe that remittances by the migrant workers are an important source of long rum growth. Therefore, recent studies have investigated the indirect and direct effects remittances on the growth rates of the recipient countries. This paper analyses the strength of these effects with a common data set and with alternative methods of estimation. It is found that while the evidence supports the indirect effects of remittances, the direct growth effects of remittances seem to be insignificant.
|Item Type:||MPRA Paper|
|Original Title:||A panel data analysis of the growth effects of remittances|
|Keywords:||Remittances, Growth, Panel Data, System GMM|
|Subjects:||F - International Economics > F2 - International Factor Movements and International Business > F22 - International Migration
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
|Depositing User:||B. Bhaskara Rao|
|Date Deposited:||20. Oct 2009 19:37|
|Last Modified:||15. Feb 2013 03:57|
Acosta, P., Lartey, E., and F. Mandelman (2007) Remittances and the Dutch Disease, Federal Reserve Bank of Atlanta WP 2007-8.
Adams, R., and J. Page (2005) Do International Migration and Remittances Reduce Poverty in Developing Countries?, World Development, 33(10): 1645-69.
Aggarwal, R., Demirguc-Kunt, A. and M. Peria (2006) Do Workers’ Remittances Promote Financial Development?, World Bank Policy Research Working Paper 3957, Washington, D.C.
Amuedo-Dorantes, C., and S. Pozo (2004) Workers’ Remittances and the Real Exchange Rate: A Paradox of Gifts, World Development, Vol. 32(8): 1407-1417
Ang, J., (2008) A Survey of Recent Developments in the Literature of Finance and Growth, Journal of Economic Surveys, vol. 22(3), 536-576,
Arellano M., and O. Bover (1995): Another Look at the Instrumental Variables Estimation of Error-Component Models, Journal of Econometrics, 68, 29-51.
Arellano, M., and S. Bond (1991): Some Test of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment equations, Review of Economic Studies 58, 277-297.
Barajas, A., Chami, R., Fullenkamp, C., Gapen, M., and P., Montiel (2009) Do Workers’ Remittances Promote Economic Growth?, International Monetary Fund Working Paper No. WP/09/153
Blundell, R., and S. Bond (1998): Initial Conditions and Moment Restrictions in Dynamic Panel Data Models, Journal of Econometrics, 87, 115-143.
Burnside, C., and D. Dollar (2000) Aid, Policies, and Growth, American Economic Review, 90 (4): pp. 847–868.
Buny, M., and F. Weindmeijer (2009) Problem of the System GMM Estimator in Dynamic Panel Data Models, Econometrics Journal (Forthcoming) volume 12, pp.1-32
Chami, R., Barajas, A., Cosimano, T., Fullenkamp, C., Gapen, M.,and P. Montiel (2008) Macroeconomic Consequences of Remittances, Occasional Paper No. 259, International Monetary Fund
Dollar, D., and Kraay, A. (2004) Trade, growth and poverty, Economic Journal, 114(493), F22–F49.
Durlauf, S., Johnson, P., and J. Temple (2005) Growth econometrics. In Aghion, P., and Durlauf, S. (Eds.), Handbook of Economic Growth, vol. 1, pp. 555–677. Chapter 8, pp. 555-677.
Demirgüç-Kunt, A., and R. Levine (2008) Finance and Economic Opportunity, World Bank Policy Research Working Paper No. 4468
Easterly, W., Levine, R., and D. Roodman, (2004) New data, New doubts: A Comment on Burnside and Dollar's “Aid, Policies, and Growth”, American Economic Review, 94 (3), 774–780.
Edwards, S., (1998): Openness, Productivity and Growth: What Do We Really Know?, Economic Journal, 108(447), 383-98.
Greiner, A., Semler, W. and G. Gong (2004) The Forces of Economic Growth: A Time Series Perspective, Princeton, NJ: Princeton University Press.
Giuliano, P., and M. Ruiz-Arranz (2009) Remittances, Financial Development, and Growth, Journal of Development Economics, 90, 144-152.
Gupta, S., Pattillo, C., and S. Wagh (2009) Effect of Remittances on Poverty and Financial Development in Sub-Saharan Africa, World Development, Vol. 37(1), pp. 104-115
Hnatkovska, V., and N. Loayza (2003) Volatility and Growth, World Bank Working Paper No. WPS3184.
Insights (2006) Sending money home: Can remittances reduce poverty?, Institute of Development Studies, University of Sussex
International Monetary Fund (2005) Two Current Issues Facing Developing Countries, in World Economic Outlook, April 2005: Globalization and External Imbalances, World Economic and Financial Surveys (Washington).
Jones, C., (1995) R&D Based Models for Economic Growth, Journal of Political Economy, 103: 759-784
Kroft, K., and H. Lloyd-Ellis (2002) Further Cross-Country Evidence on the Link Between Growth, Volatility and Business Cycles, Queens University Working Paper.
Kohcerlakota, N., and Kei-Mu, Yi (1996) A Simple Time Series Test of Endogenous vs. Exogenous Growth Models: An Application to the United States, Review of Economics and Statistics, 78 (1), 126–134.
Lartey, E., Mandelman, F. and P. Acosta (2008) Remittances, Exchange Rate Regimes, and the Dutch Disease: A Panel Data Analysis, Federal Reserve Bank of Atlanta Working Paper 2008-12
Lopez, H., Molina, L. and Bussolo, M. (2007) Remittances and Real Exchange Rate, World Bank Policy Research Working Paper 4213, Washington: D.C.
Mankiw, N. G., D. Romer and D. N. Weil (1992) A contribution to the Empirics of Economic Growth, Quarterly Journal of Economics, 107(2), 407-437.
Parente (2001) The Failure of Endogenous Growth, Knowledge, Technology and Policy, 13: 49-58
Ramey, G., and V. A. Ramey (1995) Cross-Country Evidence on the Link Between Volatility and Growth, American Economic Review, December 85(5), pp. 1138 – 1151
Ratha, D., (2003) “Workers’ Remittances: An Important and Stable Source of External Development Finance,” in Global Development Finance 2003 (Washington: World Bank).
Rogers, M., (2003) A Survey of Economic Growth, Economic Record 79 (244), 112–135.
Rao, B. B. (2006) Investment Ratio and Growth, ICFAI Journal of Applied Economics 3: 68-72.
Rao, B., and A. Cooray (2008) Growth literature and policies for the developing countries, MPRA Paper 10951, University Library of Munich, Germany
Rao, B. B., Tamazian, A. and R. Singh (2009) What is the Long Run Growth Rate of the Asian Tigers?, MPRA Paper 12668, University Library of Munich, Germany, forthcoming, Applied Economics Letters.
Sato R (1963). Fiscal Policy in a Neo-Classical Growth Model: An Analysis of Time Required for Equilibrium Adjustment, Review of Economic Studies 30: 16-23
Siddiqui, R., and A. R. Kemal, (2006): Remittances, Trade Liberalisation, and Poverty in Pakistan: The Role of Excluded Variables in Poverty Change Analysis, The Pakistan Development Review, vol. 45(3), pages 383-415.
Solow, R. (1956): A Contribution to the theory of economic growth, Quarterly Journal of Economics, 70(1), 65-94.
Solow, R. (2000). Toward a Macroeconomics of the Medium Run, Journal of Economic Perspectives 14: 151-158
World Bank (2006) The Development Impact of Workers’ Remittances in Latin America, Vol. 2: Detailed Findings (Chapter 3, Section V), Report No. 37026 (Washington)