Hassan, Gazi and Shakur, Shamim and Bhuyan, Mohammed (2012): Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh.
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The macroeconomic impacts of remittances flows on developing economies are not well understood. The paper is an attempt to understand the impact of inward remittances flows on per capita GDP growth in Bangladesh during 1974-2006. We find that the growth effect of remittances is negative at first but becomes positive at a later stage- a strong evidence of a non-linear relationship. This could be due to unproductive use of remittances in the beginning followed by more productive utilisation. Remittances positively affect per capita GDP growth in Bangladesh when the complementarity between remittances and financial development is incorporated into the analysis.
|Item Type:||MPRA Paper|
|Original Title:||Nonlinear growth effect of remittances in recipient countries: an econometric analysis of remittances-growth nexus in Bangladesh|
|Keywords:||Remittances; Economic Growth; Bangladesh; IV-estimation; Remittances utilisation|
|Subjects:||F - International Economics > F0 - General
O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity
F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances
|Depositing User:||Gazi M. Hassan|
|Date Deposited:||16. Jul 2012 13:18|
|Last Modified:||28. Feb 2015 09:46|
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