Jawaid, Syed Tehseen and Raza, Syed Ali (2012): Remittances, Growth and Convergence: Evidence from Developed and Developing Countries.
Download (371kB) | Preview
This study investigates the relationship between workers’ remittances and economic growth by using 7 years average annual data of 113 countries from the period 2003 to 2009. Results indicate the positive and significant relationship between workers’ remittances and economic growth in sample of low income, middle income, high income and all countries. Results also show that the workers’ remittances are more contributing in high income countries as compare to low and middle income countries. Sensitivity analysis has been performed to test the consistency of initial results and confirms that the results are robust. Unconditional convergence results confirm the convergence in all categories. Results confirm that countries are coming together with respect to per capita income. Results of conditional convergence based on workers’ remittances model suggest the low and middle income countries are converging each other more rapidly. Conversely, results show that high income and all countries models are converging each other but at slower pace in conditional model with workers’ remittances as compare to unconditional model.
|Item Type:||MPRA Paper|
|Original Title:||Remittances, Growth and Convergence: Evidence from Developed and Developing Countries|
|English Title:||Remittances, Growth and Convergence: Evidence from Developed and Developing Countries|
|Keywords:||Remittances, Economic Growth, Cross Country Analysis|
|Subjects:||O - Economic Development, Innovation, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O47 - Empirical Studies of Economic Growth ; Aggregate Productivity ; Cross-Country Output Convergence
F - International Economics > F4 - Macroeconomic Aspects of International Trade and Finance > F43 - Economic Growth of Open Economies
F - International Economics > F2 - International Factor Movements and International Business > F24 - Remittances
|Depositing User:||Syed Ali Raza|
|Date Deposited:||24. May 2012 13:30|
|Last Modified:||25. Sep 2015 09:09|
Adeniyi, O.M. Abiodun, L.N. (2011) Health Expenditure and Nigerian Economic Growth, European Journal of Economics, Finance and Administrative Sciences, 30, pp. 125-129.
Ahortor, C.R.K. Adenutsi, D.E. (2009) The Impact of Remittances on Economic Growth in Small-Open Developing Economics, Journal of Applied Sciences 9(18), pp. 3275-3286.
Ahmed, J. Zaman, K. Shah, I.A. (2011) An Empirical Analysis of Remittances-Growth Nexus in Pakistan Using Bound Testing Approach, Journal of Economics and International Finance 3(3), pp. 176-186.
Azam, M. Khan, A. (2011) Workers’ Remittances and Economic Growth: Evidence from Azerbaijan and Armenia, Global Journal of Humanities and Social Sciences 11(7).
Barro, R.J. (1996) Determinants of Economic Growth: A Cross-Country Empirical Study. NBER Working Paper No: 5698.
Chami, R. Fullenkamp, C. Jahjah, S. (2003) Are Immigrant Remittances Flows a Source of Capital for Development?. International Monetary Fund, Working Paper: WP/03/189.
Faini, R. (2006) Migration and Remittance: The Impact on the Countries of Origin, Paper Presented at Fourth AFD/EUDN Conference on “Migration and Development: Mutual Benefits?” held on November 08, 2006, Paris, France.
Fayissa, B. Nsiah, C. (2010) Can Remittances Spur Economic Growth and Development? Evidence from Latin American Countries (LACs), Middle Tennessee State University Working Paper Series: March 2010.
Imai, K. Gaiha, R. Ali, A. and Kaicker, N. (2011) Remittances, Growth and Poverty: New Evidence from Asian Countries, Research Institute for Economics and Business Administration KOBE University, Discussion Paper No. 30.
Jawaid, S.T. Waheed, A. (2011) Effects of Terms of Trade and its volatility on Economic Growth: A Cross Country Empirical Investigation, Transition Studies Review 18(2),pp. 217-229.
Jongwanich, J. (2007) Workers’ Remittances, Economic Growth and Poverty in Developing Asia and the Pacific Countries, UNESCAP Working Papers, WP/07/01.
Karagoz, K. (2009) Workers’ Remittances and Economic Growth: Evidence from Turkey, Journal of Yasar University 4(13), pp. 1891-1908.
Kohpaiboon, A. (2003) Foreign Trade Regimes and The FDI-Growth Nexus: A Case Study of Thailand, Journal of Development Studies 40(2), pp. 55-69.
Levine, R. Renelt, R.D. (1992) A Sensitivity Analysis of Cross Country Growth Regression, American Economic Review 82(4), pp. 942-963.
Mohamed, S.E. (2009) Workers’ Remittances and Growth in MENA Labor Exporting Countries, International Network for Economic Research Working Paper, 2009.10.
Mundaca, B.G. (2009) Remittances, Financial Market Development, and Economic Growth: The Case of Latin America and the Caribbean, Review of Development Economies 13(2), pp. 288-303.
Pradhan, G. Upadhaya, M. Upadhaya, K. (2008) Remittances and Economic Growth in Developing Countries. The European Journal of Development Research 20, pp. 497-506.
Ramirez, M.D. Sharma, H. (2008) Remittances and Growth in Latin America: A Panel Unit Root and Panel Cointegration Analysis, Department of Economics Yale University, Working Paper No. 51.
Sofranko, A.J. Idris, K. (1999) Use of Overseas Migrants’ Remittances to the Extended Family for Business Investment: A Research Note. Rural Sociology 64: 464-481.
Waheed, A. Aleem, A. (2008) Workers’ Remittances and Economic Growth: Empirical Evidence from Pakistan. Journal of Social Science and Humanities 47(1), pp. 1-12
World Development Indicators (various years) Web Link: http:// http://data.worldbank.org/data-catalog/world-development-indicators
Yanikkaya, H. (2003) Trade Openness and Economic Growth: A Cross-Country Empirical Investigation. Journal of Development Economics 72, pp. 57– 89.