IDEAS home Printed from https://ideas.repec.org/a/mig/remrev/v3y2018i2p109-134.html
   My bibliography  Save this article

Impact of development aid on remittances sent from donor-countries

Author

Listed:
  • Sena Kimm Gnangnon

    (World Trade Organization, Switzerland)

Abstract

This article examines the impact of the aggregate development aid supplied by donors at the aggregate level of remittances sent from donor-countries. The empirical analysis focuses on 22 donor-countries over the period 2000-2015. It uses instrumental variables approaches and provide evidence that donors' overall aid supply could be substitute or complementary with remittances paid flows, depending on the level of remittances sent from donor-countries, as well as on the share of migrants' stock on the total population of the host-country.

Suggested Citation

  • Sena Kimm Gnangnon, 2018. "Impact of development aid on remittances sent from donor-countries," Remittances Review, Remittances Review, vol. 3(2), pages 109-134, October.
  • Handle: RePEc:mig:remrev:v:3:y:2018:i:2:p:109-134
    as

    Download full text from publisher

    File URL: https://journals.tplondon.com/index.php/rem/article/view/549/555
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Badi H. Baltagi, 2021. "Simultaneous Equations with Error Components," Springer Texts in Business and Economics, in: Econometric Analysis of Panel Data, edition 6, chapter 0, pages 157-186, Springer.
    2. Timothy J. Hatton & Jeffrey G. Williamson, 2002. "What Fundamentals Drive World Migration?," NBER Working Papers 9159, National Bureau of Economic Research, Inc.
    3. Berthélemy, Jean-Claude & Beuran, Monica & Maurel, Mathilde, 2009. "Aid and Migration: Substitutes or Complements?," World Development, Elsevier, vol. 37(10), pages 1589-1599, October.
    4. Richard H. Adams, Jr. & John Page, 2003. "International migration, remittances, and poverty in developing countries," Policy Research Working Paper Series 3179, The World Bank.
    5. Fuchs, Andreas & Dreher, Axel & Nunnenkamp, Peter, 2014. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," World Development, Elsevier, vol. 56(C), pages 172-199.
    6. Kleibergen, Frank & Paap, Richard, 2006. "Generalized reduced rank tests using the singular value decomposition," Journal of Econometrics, Elsevier, vol. 133(1), pages 97-126, July.
    7. Schiff, Maurice, 1994. "How trade, aid, and remittances affect international migration," Policy Research Working Paper Series 1376, The World Bank.
    8. Round, Jeffery I. & Odedokun, Matthew, 2004. "Aid effort and its determinants," International Review of Economics & Finance, Elsevier, vol. 13(3), pages 293-309.
    9. Riccardo Faini, 2006. "Foreign aid and fiscal policy," Development Working Papers 212, Centro Studi Luca d'Agliano, University of Milano.
    10. Connel Fullenkamp & Mr. Thomas F. Cosimano & Michael T. Gapen & Mr. Ralph Chami & Mr. Peter J Montiel & Mr. Adolfo Barajas, 2008. "Macroeconomic Consequences of Remittances," IMF Occasional Papers 2008/001, International Monetary Fund.
    11. Freund, Caroline & Spatafora, Nikola, 2005. "Remittances : transaction costs, determinants, and informal flows," Policy Research Working Paper Series 3704, The World Bank.
    12. Andrews,Donald W. K. & Stock,James H. (ed.), 2005. "Identification and Inference for Econometric Models," Cambridge Books, Cambridge University Press, number 9780521844413.
    13. Michael A. Clemens, 2014. "Does development reduce migration?," Chapters, in: Robert E.B. Lucas (ed.), International Handbook on Migration and Economic Development, chapter 6, pages 152-185, Edward Elgar Publishing.
    14. Dang, Hai-Anh & Knack, Stephen & Rogers, F. Halsey, 2013. "International aid and financial crises in donor countries," European Journal of Political Economy, Elsevier, vol. 32(C), pages 232-250.
    15. Mrs. Poonam Gupta, 2005. "Macroeconomic Determinants of Remittances: Evidence from India," IMF Working Papers 2005/224, International Monetary Fund.
    16. Adams Jr., Richard H., 2009. "The Determinants of International Remittances in Developing Countries," World Development, Elsevier, vol. 37(1), pages 93-103, January.
    17. Siegfried, Nikolaus & Schiopu, Ioana, 2006. "Determinants of workers' remittances: evidence from the European Neighbouring Region," Working Paper Series 688, European Central Bank.
    18. Baltagi, Badi H. & Liu, Long, 2009. "A note on the application of EC2SLS and EC3SLS estimators in panel data models," Statistics & Probability Letters, Elsevier, vol. 79(20), pages 2189-2192, October.
    19. Faini, Riccardo & Venturini, Alessandra, 1993. "Trade, aid and migrations: Some basic policy issues," European Economic Review, Elsevier, vol. 37(2-3), pages 435-442, April.
    20. El-Sakka, M. I. T. & McNabb, Robert, 1999. "The Macroeconomic Determinants of Emigrant Remittances," World Development, Elsevier, vol. 27(8), pages 1493-1502, August.
    21. Robert E.B. Lucas (ed.), 2014. "International Handbook on Migration and Economic Development," Books, Edward Elgar Publishing, number 15465.
    22. Gnangnon, Sena Kimm, 2013. "The consequences of fiscal episodes in OECD DAC countries for aid supply," The Quarterly Review of Economics and Finance, Elsevier, vol. 53(3), pages 302-313.
    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


    Cited by:

    1. Gnangnon, Sèna Kimm, 2023. "Effect of Economic Uncertainty on Remittances Flows from Developed Countries," EconStor Preprints 279480, ZBW - Leibniz Information Centre for Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Marina Murat, 2020. "Foreign aid, bilateral asylum immigration and development," Journal of Population Economics, Springer;European Society for Population Economics, vol. 33(1), pages 79-114, January.
    2. Dreher, Axel & Fuchs, Andreas & Langlotz, Sarah, 2019. "The effects of foreign aid on refugee flows," European Economic Review, Elsevier, vol. 112(C), pages 127-147.
    3. Sena Kimm Gnangnon, 2019. "De Facto Fiscal Space in Donor-countries and Their Aid Supply: To What Extent is Trade-related Aid Supply Affected?," South Asian Journal of Macroeconomics and Public Finance, , vol. 8(1), pages 1-25, June.
    4. Lanati, Mauro & Thiele, Rainer, 2018. "The impact of foreign aid on migration revisited," World Development, Elsevier, vol. 111(C), pages 59-74.
    5. Artatrana Ratha and Eungmin Kang, 2020. "Macroeconomic Determinants of International Remittances: Evidence from Time-Series and Panel Methods," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 45(3), pages 51-76, September.
    6. Ademmer, Esther & Akgüç, Mehtap & Barslund, Mikkel & Di Bartolomeo, Anna & Benček, David & Groll, Dominik & Hoxhaj, Rezart & Lanati, Mauro & Laurentsyeva, Nadzeya & Lücke, Matthias & Ludolph, Lars & R, 2017. "2017 MEDAM Assessment Report on Asylum and Migration Policies in Europe. Sharing responsibility for refugees and expanding legal immigration," MEDAM Assessment Report on Asylum and Migration Policies in Europe, Mercator Dialogue on Asylum and Migration (MEDAM), number 182239.
    7. Michael, Owiso, 2008. "Literature Review: Migration, Remittances and Development," MPRA Paper 104988, University Library of Munich, Germany, revised 2008.
    8. Gnangnon, Sèna Kimm, 2017. "Structural economic vulnerability, openness and bilateral development aid flows," Economic Analysis and Policy, Elsevier, vol. 53(C), pages 77-95.
    9. Zakiyyah, Varachia, 2018. "Literature Review of Migration and Development," MPRA Paper 106444, University Library of Munich, Germany, revised 2018.
    10. MITSUI, Izumi, 2019. "A Literature Review of Economic Diaspora," MPRA Paper 109115, University Library of Munich, Germany, revised 2019.
    11. Sèna Kimm Gnangnon, 2013. "How do OECD donor countries distribute foreign aid among developing countries during their fiscal episodes?," CERDI Working papers halshs-00786009, HAL.
    12. Marina Murat, 2017. "Foreign aid and asylum immigration. Does development matter?," Department of Economics 0120, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    13. Sule Akkoyunlu, 2010. "Are Turkish Migrants Altruistic?," KOF Working papers 10-246, KOF Swiss Economic Institute, ETH Zurich.
    14. David, Blight, 2017. "Literature Review on International Migration: Development Perspectives," MPRA Paper 106312, University Library of Munich, Germany, revised 2017.
    15. Marina Murat, 2017. "Foreign Aid and responsiveness of bilateral refugee inflows," Department of Economics 0113, University of Modena and Reggio E., Faculty of Economics "Marco Biagi".
    16. Marina Murat, 2017. "Foreign aid and asylum immigration. Does development matter?," Center for Economic Research (RECent) 133, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".
    17. Christidis, Les, 2008. "Literature Review on Migration and Remittances Development," MPRA Paper 105237, University Library of Munich, Germany, revised 2008.
    18. Mr. Maelan Le Goff & Mr. Kangni R Kpodar, 2011. "Do Remittances Reduce Aid Dependency?," IMF Working Papers 2011/246, International Monetary Fund.
    19. Carmen, Maria del, 2018. "Economic Migration and Diaspora: A Literature Review," MPRA Paper 109498, University Library of Munich, Germany, revised 2018.
    20. Graziella Bertocchi & Arcangelo Dimico & Francesco Lancia & Alessia Russo, 2017. "Youth Enfranchisement, Political Responsiveness, and Education Expenditure: Evidence from the U.S," Center for Economic Research (RECent) 130, University of Modena and Reggio E., Dept. of Economics "Marco Biagi".

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mig:remrev:v:3:y:2018:i:2:p:109-134. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Rem Rev (email available below). General contact details of provider: https://www.remittancesreview.com/ .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.