Do remittances impact human development in developing countries? A panel analysis of selected countries

Bibi, Chan and Ali, Amjad (2021): Do remittances impact human development in developing countries? A panel analysis of selected countries.

Abstract

Remittances are the part of migrant workers and essentially cash exchanges earned abroad and sent to their families. Worker remittances are an important part of international capital flows. The volume of remittances increments in developing countries day by day and season through season. Remittances are the backbone of developing economies. We have used annual cross-section data from the period 2014 from 100 developing countries including Afghanistan, Pakistan, Turkey, Bangladesh, Iraq, and China. Results show that there is a positive and insignificant relationship between remittances and human development in each of the selected developing countries.

• Item Type: MPRA Paper
• Language: English
• Keywords: remittances, human development, developing countries
• Subjects: F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances; J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J24 - Human Capital ; Skills ; Occupational Choice ; Labor Productivity

References

Afaha, J. S. (2013). Migration, remittance, and development in origin countries: evidence from Nigeria. Etude de la Population Africaine, 27(1).

Ali, A. (2015). The impact of macroeconomic instability on social progress: an empirical analysis of Pakistan. (Doctoral dissertation, National College of Business Administration & Economics Lahore).

Ali, A. (2018). Issue of Income Inequality Under the Perceptive of Macroeconomic Instability: An Empirical Analysis of Pakistan. Pakistan Economic and Social Review, 56(1), 121-155.

Ali, A. and Bibi, C. (2017). Determinants of Social Progress and its Scenarios under the role of Macroeconomic Instability: Empirics from Pakistan. Pakistan Economic and Social Review 55 (2), 505-540.

Ali, A., & Ahmad, K. (2014). The Impact of Socio-Economic Factors on Life Expectancy in Sultanate of Oman: An Empirical Analysis. Middle-East Journal of Scientific Research, 22(2), 218-224.

Ali, A., & Audi, M. (2016). The Impact of Income Inequality, Environmental Degradation and Globalization on Life Expectancy in Pakistan: An Empirical Analysis. International Journal of Economics and Empirical Research, 4 (4), 182-193.

Ali, A., & Audi, M. (2018). Macroeconomic Environment and Taxes Revenues in Pakistan: An Application of ARDL Approach. Bulletin of Business and Economics (BBE), 7(1), 30-39.

Ali, A., & Rehman, H. U. (2015). Macroeconomic instability and its impact on the gross domestic product: an empirical analysis of Pakistan. Pakistan Economic and Social Review, 285-316.

Ali, A., & Şenturk, I. (2019). Justifying the Impact of Economic Deprivation, Maternal Status and Health infrastructure on Under-Five Child Mortality in Pakistan: An Empirical Analysis. Bulletin of Business and Economics, 8(3), 140-154.

Ali, A., & Zulfiqar, K. (2018). An Assessment of Association between Natural Resources Agglomeration and Unemployment in Pakistan. Pakistan Vision, 19(1), 110-126.

Ali, A., Ahmed, F., & Rahman, F. U. (2016). Impact of Government Borrowing on Financial Development (A case study of Pakistan). Bulletin of Business and Economics (BBE), 5(3), 135-143.

Ali, A., Audi, M., & Roussel, Y. (2021). Natural Resources Depletion, Renewable Energy Consumption and Environmental Degradation: A Comparative Analysis of Developed and Developing World. International Journal of Energy Economics and Policy, 11(3), 251-260.

Ali, A., Audi, M., Bibi, C., & Roussel, Y. (2021). The Impact of Gender Inequality and Environmental Degradation on Human Well-being in the Case of Pakistan: A Time Series Analysis. International Journal of Economics and Financial Issues, 11(2), 92-99.

Ali, A., Mujahid, N., Rashid, Y., & Shahbaz, M. (2015). Human capital outflow and economic misery: Fresh evidence for Pakistan. Social Indicators Research, 124(3), 747-764.

Alishani, A., and Nushi, A. (2012). Migration and development: the effects of remittances on education and health of family members left behind for the case of Kosovo. Analytical Journal, 5(1).

Ångman, J., and Larsson, P. (2014). Remittances and Development: Empirical evidence from 99 developing countries.

Arshad, S., & Ali, A. (2016). Trade-off between Inflation, Interest and Unemployment Rate of Pakistan: Revisited. Bulletin of Business and Economics (BBE), 5(4), 193-209.

Ashraf, I., & Ali, A. (2018). Socio-Economic Well-Being and Women Status in Pakistan: An Empirical Analysis. Bulletin of Business and Economics (BBE), 7(2), 46-58.

Barguellil, A., Zaiem, M. H., and Zmami, M. (2013). Remittances, Education and Economic Growth A Panel Data Analysis. Journal of Business Studies Quarterly, 4(3), 129.

Berdiev, A. N., Kim, Y., and Chang, C.-P. (2013). Remittances and corruption. Economics Letters, 118(1), 182-185.

Bredl, S. (2011). Migration, remittances and educational outcomes: The case of Haiti. International Journal of Educational Development, 31(2), 162-168.

Brown, R. P. (2008). Remittances and development in the Pacific: Effects on human development in Fiji and Tonga. Paper presented at the Bangkok, ESCAP, EGM Meeting on Migration and Development.

Chimhowu, A., Piesse, J., and Pinder, C. (2005). The socioeconomic impact of remittances on poverty reduction. Remittances: Development impact and future prospects, 84-102.

De Haas, H. (2010). Remittances, migration and development: Policy options and policy illusions South-South Migration (pp. 158-189): Springer.

Deb, P., and Seck, P. A. (2009). Internal migration, selection bias and human development: Evidence from Indonesia and Mexico.

Fayissa, B., and Nsiah, C. (2010). Can Remittances Spur Economic Growth and Development? Evidence from Latin American Countries (LACs). Department of Economics and Finance Working Paper Series.

Gounder, R. (2014). Does Remittances Finance Welfare Development?: Evidence from the South Pacific Island Nation of Fiji. Paper presented at the Proceedings of Economics and Finance Conferences.

Hatemi-J, A., and Shamsuddin, M. (2016). The causal interaction between financial development and human development in Bangladesh. Applied Economics Letters, 1-4.

Ilahi, N., and Jafarey, S. (1999). Guestworker migration, remittances and the extended family: evidence from Pakistan. Journal of Development Economics, 58(2), 485-512.

Koc, I., and Onan, I. (2004). International Migrants' Remittances and Welfare Status of the Left‐Behind Families in Turkey. International Migration Review, 38(1), 78-112.

Kock, U., and Sun, Y. (2011). Remittances in Pakistan-Why have they gone up, and why aren’t they coming down? IMF Working Papers, 1-26.

Koska, O. A., Saygin, P. Ö., Çağatay, S., and Artal-Tur, A. (2013). International migration, remittances, and the human capital formation of Egyptian children. International Review of Economics and Finance, 28, 38-50.

Kroeger, A., and Anderson, K. H. (2014). Remittances and the human capital of children: New evidence from Kyrgyzstan during revolution and financial crisis, 2005–2009. Journal of Comparative Economics, 42(3), 770-785.

Madani, F., Muharremi, O., and Pelari, E. (2013). The Effect Remittances Have on the Living Standards of Albanians and on Country’s GDP. Mediterranean Journal of Social Sciences, 4(10), 415.

Orrenius, P. M., Zavodny, M., Canas, J., and Coronado, R. (2010). Do remittances boost economic development-evidence from Mexican states. Law and Bus. Rev. Am., 16, 803.

Ponce, J., Olivié Aldasoro, L., and Onofa, M. (2008). Remittances for Development?: A Case Study of the Impact of Remittances on Human Development in Ecuador. Elcano Newsletter, (48), 33.

Ponce, J., Olivié, I., and Onofa, M. (2011). The Role of International Remittances in Health Outcomes in Ecuador: Prevention and Response to Shocks1. International Migration Review, 45(3), 727-745.

Rao, B. B., and Hassan, G. M. (2011). A panel data analysis of the growth effects of remittances. Economic modelling, 28(1), 701-709.

Salas, V. B. (2014). International remittances and human capital formation. World Development, 59, 224-237.

Sawyer, A. (2014). Is Money Enough?: The Effect of Migrant Remittances on Parental Aspirations and Youth Educational Attainment in Rural Mexico. International Migration Review.

Stojanov, R., and Strielkowski, W. (2013). The Role of Remittances as More Efficient Tool of Development Aid in Developing Countries. Prague Economic Papers, 22(4), 487-503.

Ustubici, A., and Irdam, D. (2012). The Impact of Remittances on Human Development: a Quantitative Analysis and Policy Implications. Economics and Sociology, 5(1), 74.