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Worker remittances, migration, accumulation and growth in poor developing countries: Survey and analysis of direct and indirect effects

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  • Ziesemer, Thomas H.W.

Abstract

A broad but brief survey of the literature on remittances and growth shows that indirect effects are only included via interaction terms. Then, we regress data for migration, worker remittances, savings, investment, tax revenues, public expenditure on education, interest rates, literacy, labor force growth, development aid and GDP per capita growth on migration, remittances and other variables for a panel of countries with income below $1200. The estimated dynamic equations are integrated to a system used for baseline simulations. Comparison with the counterfactual policy simulations ‘only 50% remittances’ or ‘no net migration anymore’ shows that the total effect of remittances on levels and growth rates of GDP per capita, investment and literacy are positive, and that of net migration is negative for literacy and investment but positive for growth.

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Bibliographic Info

Article provided by Elsevier in its journal Economic Modelling.

Volume (Year): 29 (2012)
Issue (Month): 2 ()
Pages: 103-118

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Handle: RePEc:eee:ecmode:v:29:y:2012:i:2:p:103-118

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Web page: http://www.elsevier.com/locate/inca/30411

Related research

Keywords: Remittances; Growth; Migration; Accumulation; Developing countries;

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References

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Cited by:
  1. Ziesemer, Thomas, 2012. "Worker remittances and government behaviour in the receiving countries," MERIT Working Papers 065, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  2. Jounghyeon Kim, 2013. "Remittances and Currency Crisis: The Case of Developing and Emerging Countries," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., vol. 49(6), pages 88-111, November.

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