Munich Personal RePEc Archive

The impact of remittances on economic growth in small-open developing economies

Ahortor, Christian R.K. and Adenutsi, Deodat E. (2008): The impact of remittances on economic growth in small-open developing economies. Published in: Journal of Applied Sciences , Vol. 9, No. 18 (September 2009): pp. 3275-3286.

[img]
Preview
PDF
MPRA_paper_37109.pdf

Download (887kB) | Preview

Abstract

The essence of this study is to verify the macroeconomic implications of cross-border remittances for economic growth prospects of small-open developing economies for the period, 1996-2006. A set of dynamic panel model, specified within the framework of Blundell-Bond Generalized Method of Moment (GMM) was empirically analyzed. Using annual panel data from 31 small-open developing countries from Sub-Saharan Africa, Latin America and the Caribbean, this paper argues that, contemporaneously, remittances contribute significantly to economic growth in small-open developing economies. Remittances, however, contribute more to long-run economic growth in Latin America and the Caribbean than to Sub-Saharan Africa. In dynamic terms, remittances retard economic growth, but with overall positive impact across these regions.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.