Advanced Search
MyIDEAS: Login to save this article or follow this journal

Workers' remittances and economic growth in China and Korea: an empirical analysis

Contents:

Author Info

  • Syed Tehseen Jawaid
  • Syed Ali Raza

Abstract

Purpose – This purpose of this paper is to investigate the relationship between workers' remittances and economic growth in China and Korea. Design/methodology/approach – This paper has employed annual time series data over the period of 1980 to 2009. Johansen and Jeuuselius's cointegration technique, error correction model, and sensitivity analysis have been performed to analyze the long-run, short-run relationships and robustness of the results, respectively. Findings – Cointegration results confirm that there exists significant positive long-run relationship between remittances and economic growth in Korea, while, significant negative relationship exist between remittances and economic growth in China. Error correction model confirms the significant positive short-run relationship of workers' remittances with economic growth in Korea, while the results of China were insignificant in short run. Causality analysis confirms unidirectional causality runs from workers' remittances to economic growth, in both China and Korea. Sensitivity analysis confirms that the results are robust. Practical implications – It is suggested that Korea should form friendly policies to ensure the continuous inflows of workers' remittances and their efficient utilization to ensure economic growth. On the other hand, China should keep an eye to reducing voluntary unemployment, which leads to decrease in productivity and growth in the country. Originality/value – The paper provides some empirical evidence of whether workers' remittances have contributed significantly to large open economies.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.emeraldinsight.com/journals.htm?issn=1754-4408&volume=5&issue=3&articleid=17058220&show=abstract
Download Restriction: Articles are not free to download

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Emerald Group Publishing in its journal Journal of Chinese Economic and Foreign Trade Studies.

Volume (Year): 5 (2012)
Issue (Month): 3 (December)
Pages: 185-193

as in new window
Handle: RePEc:eme:ceftpp:v:5:y:2012:i:3:pp:185-193

Contact details of provider:
Web page: http://www.emeraldinsight.com

Order Information:
Postal: Emerald Group Publishing, Howard House, Wagon Lane, Bingley, BD16 1WA, UK
Email:
Web: http://www.emeraldinsight.com/jcefts.htm

Related research

Keywords: China; Economic growth; Korea; National economy; Open economy; Remittances;

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Syed Jawaid & Abdul Waheed, 2011. "Effects of Terms of Trade and its Volatility on Economic Growth: A Cross Country Empirical Investigation," Transition Studies Review, Springer, vol. 18(2), pages 217-229, December.
  2. 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.
  3. Ahortor, Christian R.K. & Adenutsi, Deodat E., 2008. "The impact of remittances on economic growth in small-open developing economies," MPRA Paper 37109, University Library of Munich, Germany.
  4. Abu Siddique & E A Selvanathan & Saroja Selvanathan, 2010. "Remittances and Economic Growth: Empirical Evidence from Bangladesh India and Sri Lanka," Economics Discussion / Working Papers 10-27, The University of Western Australia, Department of Economics.
  5. Bichaka Fayissa & Christian Nsiah, 2010. "Can Remittances Spur Economic Growth and Development? Evidence from Latin American Countries (LACs)," Working Papers 201006, Middle Tennessee State University, Department of Economics and Finance.
  6. Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, vol. 72(1), pages 57-89, October.
  7. Qayyum, Abdul & Javid, Muhammad & Arif, Umaima, 2008. "Impact of Remittances on Economic Growth and Poverty: Evidence from Pakistan," MPRA Paper 22941, University Library of Munich, Germany.
  8. Archanun Kohpaiboon, 2003. "Foreign trade regimes and the FDI-Growth Nexus: a case study of Thailand," Journal of Development Studies, Taylor & Francis Journals, vol. 40(2), pages 55-69.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Wasim Qazi & Syed Raza & Syed Jawaid, 2014. "Higher education and growth performance of Pakistan: evidence from multivariate framework," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(3), pages 1651-1665, May.
  2. Jawaid, Syed Tehseen & Raza, Syed Ali, 2013. "Effects of terms of trade on growth performance of India," Economic Modelling, Elsevier, vol. 33(C), pages 940-946.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eme:ceftpp:v:5:y:2012:i:3:pp:185-193. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Harris).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.