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Remittances, Institutions, and Economic Growth

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  • Catrinescu, Natalia
  • Leon-Ledesma, Miguel
  • Piracha, Matloob
  • Quillin, Bryce

Abstract

Summary There is considerable debate regarding the relative contribution of international migrants' remittances to sustainable economic development. While officially recorded remittances to developing countries have increased over the last decade, research has not come to a consensus over whether remittances have a positive or negative impact on long-run growth. This paper argues that contradictory findings have emerged when looking at the remittances-growth link because of an omitted variable bias: specifically, remittances will be more likely to contribute to longer-term growth in countries with higher quality political and economic policies and institutions.

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Bibliographic Info

Article provided by Elsevier in its journal World Development.

Volume (Year): 37 (2009)
Issue (Month): 1 (January)
Pages: 81-92

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Handle: RePEc:eee:wdevel:v:37:y:2009:i:1:p:81-92

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Web page: http://www.elsevier.com/locate/worlddev

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Keywords: international migration remittances growth institutions growth regressions;

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  1. Samir Jahjah & Ralph Chami & Connel Fullenkamp, 2003. "Are Immigrant Remittance Flows a Source of Capital for Development," IMF Working Papers 03/189, International Monetary Fund.
  2. Daron Acemoglu & Simon Johnson & James A. Robinson, 2001. "The Colonial Origins of Comparative Development: An Empirical Investigation," American Economic Review, American Economic Association, vol. 91(5), pages 1369-1401, December.
  3. Judson, Ruth A. & Owen, Ann L., 1999. "Estimating dynamic panel data models: a guide for macroeconomists," Economics Letters, Elsevier, vol. 65(1), pages 9-15, October.
  4. Dollar, David & Kraay, Aart, 2003. "Institutions, trade, and growth," Journal of Monetary Economics, Elsevier, vol. 50(1), pages 133-162, January.
  5. Devesh KAPUR, 2004. "Remittances: The New Development Mantra?," G-24 Discussion Papers 29, United Nations Conference on Trade and Development.
  6. Dollar, David & Kraay, Aart, 2003. "Institutions, trade, and growth : revisiting the evidence," Policy Research Working Paper Series 3004, The World Bank.
  7. Roman Arjona & Maxime Ladaique & Mark Pearson, 2002. "Social Protection and Growth," OECD Economic Studies, OECD Publishing, vol. 2002(2), pages 7-45.
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